Grapple Pay Pty Ltd v Conroy

Grapple Pay Pty Ltd (in liq) appealed to the Court of Appeal of New South Wales against a decision concerning the transfer of real property. The dispute arose from the transfer of land by a director of Grapple Pay to his mother on the same day the company entered voluntary administration. The liquidator of Grapple Pay alleged that the property was transferred with the intent to defraud creditors.

The Court of Appeal was required to determine whether the transfer of the property was voidable under section 37A of the Conveyancing Act 1919 (NSW) as an alienation of property with intent to defraud creditors. A key issue was whether the director's mother, the first respondent, was a purchaser in good faith without notice of the intent to defraud at the time of the transfer.

The Court of Appeal dismissed the appeal, upholding the primary judge's finding that the first respondent had no notice of the director's intent to defraud creditors at the time of the transfer. The Court applied the principles of section 37A of the Conveyancing Act 1919 (NSW), which protects bona fide purchasers for value without notice from claims arising from fraudulent alienations. The evidence did not establish that the first respondent had actual or constructive notice of the director's fraudulent intent.

Consequently, the appeal was dismissed, and the appellant was ordered to pay the first respondent’s costs.