Aravanis (Trustee) v Kapp, in the matter of the Bankrupt Estate of Kapp [2023] FCA 702

Federal Court of Australia

Aravanis (Trustee) v Kapp, in the matter of the Bankrupt Estate of Kapp [2023] FCA 702 File numbers: NSD 853 of 2019 NSD 928 of 2021

Judgment of: PERRAM J

Date of judgment: 28 June 2023

Catchwords: BANKRUPTCY AND INSOLVENCY – application by trustees in bankruptcy to recover proceeds of sale of properties – whether transfers of property void against the trustees under ss 120 and 121 of the Bankruptcy Act 1966 (Cth) – whether alienation of property void against the trustees under s 37A of the Conveyancing Act 1919 (NSW) – whether property was held on constructive trust in favour of bankrupt – equity of exoneration – Anshun estoppel BANKRUPTCY AND INSOLVENCY – application by trustees in bankruptcy to recover proceeds of sale of properties – whether proceeds held on trust for the bankrupt estate – whether trustees entitled to relief under ss 139D(2) and 139E(2) of the Bankruptcy Act 1966 (Cth) in relation to payments to trust for services provided by bankrupt – whether payments void against trustees under ss 120 and 121 – whether trustees entitled to relief under s 37A of the Conveyancing Act 1919 (NSW) on the same basis – whether trustees entitled to taking of accounts

Legislation: A New Tax System (Goods and Services Tax) Act 1999 (Cth) Acts Interpretation Act 1901 (Cth) ss 2(2), 23(b) Bankruptcy Act 1966 (Cth) ss 58, 120, 120(1), 120(7)(b), 121, 121(1)(b), 121(2), 121(9)(b), 139A, 139D, 139D(1), 139D(2), 139E, 139E(1) and 139E(2) Income Tax Assessment Act 1936 (Cth) Conveyancing Act 1919 (NSW) s 37A