A deferred tax debt can remain due and payable

If a company owing a debt enters into an agreed payment arrangement with the creditor, that can serve to defer that debt as being ‘due and payable’ for the purposes of determining the company’s insolvency – that is, whether the company can pay all its debts as when they become due and payable.[1] It depends […]

Boensch v Pascoe – High Court’s decision

The seven member bench of the High Court which heard Boensch v Pascoe on 11 October 2019 has unanimously dismissed Boensch’s appeal [Boensch v Pascoe [2019] HCA 49] finding that on the making of the sequestration order, the debtor’s right of indemnity in the Rydalmere property held on trust by him for his family vested […]

Bankrupt trustees coming before the High Court

While the focus of the High Court’s trust law decision in Carter Holt[1] is in the context of corporate insolvency, many of the principles applied came from the law of bankruptcy. As the High Court pointed out, property held on trust by a bankrupt is specifically excluded as divisible property, under s 116(2) Bankruptcy Act; […]

Insolvency of trading trusts – Keay comments

Our 10th edition of Keay’s Insolvency was published in 2018 just after the Victorian Court of Appeal decision in Amerind, and that decision was included in our detailed analysis of the issues involved. We explain the High Court appeal decision, with more commentary to be issued in forthcoming draft updates to Keay.  The High Court […]

Liquidator’s right to disclaim contaminated land – important decision pending

Murrays Legal has reported for some time on the progress of an important issue of legal conflict before the Supreme Court of Canada between a liquidator’s right to disclaim contaminated land and an environmental regulator’s claim to recoup remediation costs from the insolvent company’s assets. The Supreme Court has announced that judgment is to be […]

The costs of lawyer litigants – ‘Chorley’ off to the High Court

Some important cases in legal history have involved small amounts of money, in particular where the matter is pursued as one of principle. Lawyers will know of the disputed ferry fare of one penny, in Balmain New Ferry Co v Robertson,[1] involving as it did the more important issue of false imprisonment. The High Court […]

Trial decisions pending a High Court appeal in Amerind

It can be legally difficult to determine what the law is when a significant legal issue is on appeal, leaving the issue uncertain in other matters where the issue arises until the appeal is heard and resolved. That is the case in relation to the insolvency of trading trustee companies, with decisions from the Victorian […]