Recent Cases

Roufeil as Trustee of the Bankrupt Estate of Tarrant v Tarrant Enterprises Pty Ltd as Trustee for the MRT Family Trust [2023] FCAFC 142 (23 August 2023) (Derrington, Abraham and Jackman JJ)


Catchwords:


BANKRUPTCY AND INSOLVENCY – appeal from decision of Federal Circuit and Family Court of Australia (Division 2) – where transfers made by a person who later became bankrupt from his current account to a loan account held by a company – whether the transfers may be avoided on the basis that each transfer constituted a “payment of money” within the meaning of ss 120 and 121 of the Bankruptcy Act 1966 (Cth) – “payment of money” bears its ordinary meaning and the mere fact of receipt of value, despite intermediary steps, is sufficient to constitute a payment of money – no defence to the avoidance of the transfers by reason of reg 31 of the Bankruptcy Regulations 2021 (Cth), double recovery or set-off

PRACTICE AND PROCEDURE – whether the proceedings ought to have been stayed as an abuse of process – whether there was a failure to comply with the rule in Browne v Dunn in relation to the issue of whether there was an agreement to forbear suing the bankrupt in negligence – ample notice given of intention to challenge existence of agreement and direct challenge to the witnesses in cross-examination – whether pre-judgment interest ought to be awarded on the judgment in circumstances where it was not pleaded