Rambaldi (Trustee) v Commissioner of Taxation, in the matter of Alex (Bankrupt) [2017] FCA 567

FEDERAL COURT OF AUSTRALIA

Rambaldi (Trustee) v Commissioner of Taxation, in the matter of Alex (Bankrupt) [2017] FCA 567 File number(s): VID 481 of 2016

Judge(s): NORTH J

Date of judgment: 25 May 2017

Catchwords: BANKRUPTCY – preference under s 122 of Bankruptcy Act 1966 (Cth) – after-acquired property vests in trustees under s 58 of Bankruptcy Act 1966 (Cth) – whether loan agreement between third party and bankrupt to discharge debt to Commissioner was a transfer of property – alternatively, whether loan moneys vested in trustees – Held: loan agreement created a Quistclose trust – application dismissed.

Legislation: Bankruptcy Act 1966 (Cth) ss 58, 115, 116, 122 Corporations Law (Cth) s 588FA(1)

Cases cited: Analogy Pty Ltd (Receiver and Manager Appointed) (in liquidation) v Bell Basic Industries Ltd; Robson v Bell Basic Industries (Sup Ct, WA, Malcolm CJ, Kennedy and Anderson JJ, 23 August 1995, unreported) Barclays Bank Limited v Quistclose Investments Limited [1970] AC 567 Commissioner of Taxation v Kassem [2012] FCAFC 124 Legal Services Board v Gillespie-Jones (2013) 249 CLR 493 Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 Re Emanuel (No 14) Pty Ltd (in liq), Macks v Blacklaw & Shadforth Pty Ltd (1997) 147 ALR 281 Re Kitts; Ex Parte: Bernard Putnin v Advanced Commercial Finance Limited [1992] FCA 796 Re Veli; Ex parte AE Developments Pty Ltd v Scott (1988) 18 FCR 204 Salvo v New Tel Limited [2005] NSWCA 281 Sheahan v Carrier Air Conditioning Pty Limited (1997) 189 CLR 407 Twinsectra Limited v Yardley (2002) AC 164