HBSY Pty Ltd v Lewis [2022] NSWSC 841

Supreme Court New South Wales

Medium Neutral Citation: HBSY Pty Ltd v Lewis [2022] NSWSC 841 Hearing dates: 2 August 2021; written submissions 9, 16 and 23 August 2021 Decision date: 24 June 2022 Jurisdiction: Equity - Probate List Before: Kunc J Decision: Orders to be made for cross-claimant Catchwords: EQUITY – General principles and maxims – Set-off – Rule in Cherry v Boultbee – Defaulting trustee – Principle in Re Dacre – Principle in Morris v Livie – Assignment – Assignee takes subject to equities BANKRUPTCY – Discharge – Liabilities not released upon discharge – Meaning of 'fraudulent' in s 153(2)(b) Legislation Cited: Bankruptcy Act 1825 (UK) Bankruptcy Act 1842 (UK) Bankruptcy Act 1869 (UK) Bankruptcy Act 1883 (UK) Bankruptcy Act 1914 (UK) Bankruptcy Act 1966 (Cth) Bankruptcy Law Consolidation Act 1849 (UK) Debtors Act 1869 (UK) Insolvency Act 1986 (UK) Trustee Act 1925 (NSW) Cases Cited: Auto Group Ltd v England [2008] NSWSC 402 Banque Commercial SA (In liq) v Akhil Holdings Ltd (1990) 169 CLR 279; [1990] HCA 11 Barewa Oil and Mining NL (In liq) v Isim Mineral Development Pty Ltd (1981) 38 ALR 288 Cherry v Boultbee (1839) 4 Myl & Cr 442; 41 ER 171 Chittick v Maxwell (1993) 118 ALR 728 Cock v Aitken (No 2) (1912) 15 CLR 373; [1912] HCA 70 Cooper v Prichard 11 QBD 351 Cornelius v Barewa Oil & Mining (NL) (in liq) [1982] WAR 311; (1982) 42 ALR 83 Cumming v Austin (1903) 28 VLR 622 Emma Silver Mining Company v Grant (1881) 17 Ch D 122 Ex parte Morier; In re Willis, Percival & Co (1879) 12 Ch D 491 Gray v Gray [2004] NSWCA 408 Gray v Guardian Trust Australia [2002] NSWSC 1218 Gray v Hart [2012] NSWSC 1435 Gye v Mclntyre (1991) 171 CLR 609; [1991] HCA 60 Hall v Macky [1935] NZLR 847 Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (In liq) (Recrs and Mgrs Apptd) (2018) 53 WAR 325; [2018] WASCA 163 Hiley v People's Prudential Assurance Company Ltd (in liq) (1938) 60 CLR 468 Holder v Holder [1968] Ch 353 Mander v Evans [2001] 1 WLR 2378 Maxwell v Chittick [1994] NSWCA 196 Morris v Livie (1842) 62 ER 934 Mulray v Ogilvie (1987) 9 NSWLR 1 Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114 O'Halloran v R T Thomas and Family Pty Ltd (1998) 45 NSWLR 262 Otis Elevator Co Pty Ltd v Guide Rails Pty Ltd (in liq) (2004) 49 ACSR 531; [2004] NSWSC 383 Phillips v Howell (1901) 2 Ch 773 Polyaire Pty Ltd v K-Aire Pty Ltd (2005) 221 CLR 287; [2005] HCA 32 Re Abat [2020] VSC 560 Re Akerman; Akerman v Akerman [1891] 3 Ch 212 Re Dacre; Whitaker v Dacre [1916] 1 Ch 344 Re Hurburgh [1959] Tas SR 25 Re Peruvian Railway Construction Co Ltd [1915] 2 Ch 144 Re Sewell; White v Sewell [1909] 1 Ch 806 Re Smith; Hands v Andrews [1893] 2 Ch 1 Re Watson; Turner v Watson [1896] 1 Ch 925 Templeton Insurance Ltd v Brunswick & Ors [2012] EWCH 1522 (Ch) Woodland-Ferrari v UCL Group Retirement Benefits Scheme [2003] Ch. 115 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: Carlos, AM, Kosack, E and Penarietta, LC, "Bankruptcy, Discharge, and the Emergence of Debtor Rights in Eighteenth-Century England" (2019) 20(2) Enterprise & Society 475 Chalmers, MD and Hough, E, The Bankruptcy Act 1883 (London, Waterlow and Sons Ltd, 1883) Derham, S R, The Law of Set-Off (Oxford University Press, 4th ed, 2010) Hanbury QC, H G, Modern Equity (Steven & Sons Limited, 8th ed, 1962) Heydon, J D, Meagher, Gummow and Lehane's Equity Doctrines and Remedies (LexisNexis, 5th ed, 2015) Janes, S, Liebhold, D and Studdert, P, Wills, Probate and Administration Law in NSW (Lawbook Co, 2nd ed, 2020) Phang, A, "Equitable Fraud - some personal reminiscences and reflections", (2019) 13 Journal of Equity 114 Quilter, M, "Bankruptcy Discharge: Origins and Liberalisation" (2017) 25 Insolvency Law Journal 107 Category: Principal judgment Parties: HBSY Pty Ltd (Plaintiff/Cross Defendant) Geoffrey Lewis (Defendant/Cross Claimant) Representation: Counsel: D K Smith (Plaintiff/Cross Defendant) P Menadue (Defendant/Cross Claimant)