Duncan in His Capacity as trustee of the Bankrupt Estate of Devine v Devine

This matter concerned an application by the trustee of the bankrupt estate of Mr. Devine (the applicant) seeking to recover funds allegedly transferred by Mr. Devine to his wife, Ms. Devine (the respondent), in contravention of section 120 of the *Bankruptcy Act 1966* (Cth). The applicant alleged that these transfers were voidable transactions, as they were made for less than market value at a time when Mr. Devine was insolvent or became insolvent as a result of the transfers. The proceedings were heard in the Federal Court of Australia.

The primary legal issue before the Court was whether the transfers of funds from Mr. Devine to Ms. Devine constituted voidable transactions under section 120 of the *Bankruptcy Act 1966* (Cth). This required the Court to determine if the transfers were made for less than the reasonably equivalent value, and if Mr. Devine was insolvent at the time of, or became insolvent as a consequence of, those transfers.

Judge Brown found that the applicant had not discharged the onus of proving that Mr. Devine was insolvent at the time of the transfers or that the transfers caused his insolvency. The Court noted that the evidence presented did not establish the value of Mr. Devine's assets or liabilities at the relevant times with sufficient certainty. Consequently, the Court concluded that the applicant had failed to establish the necessary preconditions for the application of section 120 of the *Bankruptcy Act 1966* (Cth). The application was dismissed.