Allianz v Vitale

The matter before the court was Allianz Australia Insurance Limited seeking interim preservation orders in support of a claim over funds. The judgment debtor had filed a debtors petition and become bankrupt, and had caused funds to be transferred to a respondent company controlled by the judgment debtor. The company's funds appear to have been used for personal expenditure of the judgment debtor. The company is exercising a power of disposition over the judgment debtor's assets. The legal issues before the court were whether existing orders should be continued and whether the subject funds should be paid into court. The court found that the existing orders should be continued, and that the subject funds should be paid into court. The court found that the judgment debtor had caused funds to be transferred to the respondent company for the purpose of defeating the claim of the plaintiff. The court found that the respondent company was exercising a power of disposition over the judgment debtor's assets, and that the funds in question should be paid into court to preserve them for the benefit of the judgment debtor's creditors. The court ordered that the subject funds be paid into court, and that the existing orders be continued.