Global Group Enterprises Pty Ltd v Julia Ruth McKay

In the Federal Circuit Court of Australia, Global Group Enterprises Pty Ltd sought leave to issue a writ of execution based on a change of person entitled to execute a judgment. The underlying dispute involved a deed of assignment where the assignor purported to assign their interest to a co-judgment creditor. The assignor subsequently entered bankruptcy, complicating the execution of the judgment.

The court was required to determine whether the assignor had indeed assigned the interest prior to the bankruptcy. The pivotal legal issue was whether the deed of assignment was genuine or a sham, particularly given the timing in relation to the bankruptcy. The court considered whether it should grant leave to issue a writ of execution under UCPR rule 39.1, balancing this with the potential impact on the administration of the bankrupt’s estate.

The court held that the assignment was not proved, and it was just as likely that the deed of assignment was a sham. The court declined to use its power to frustrate the administration of the estate of a bankrupt. Consequently, the leave to issue a writ of execution was refused. The court’s reasoning emphasised the importance of ensuring the integrity of the bankruptcy process and preventing actions that could undermine it.