Jabbour v Sherwood

The case of Jabbour v Sherwood involved the appellant, who had been ordered by the Magistrates Court to pay sums to the respondents, appealing against that order. The dispute centred around the validity of a property transfer and whether the appellant had an equitable interest in the property. The court was required to determine whether the property transfer was made with the intent to defeat creditors, and if the appellant had discharged the onus of proving that the transferor was solvent at the time of the transfer. The learned magistrate found that the property was transferred for an amount less than market value, and there was insufficient evidence to establish the source of income used to pay off debts. The magistrate concluded that the appellant had not discharged the onus of proving the solvency of the transferor at the time of the transfer, thereby finding the cross application by the respondents under s 120 of the Bankruptcy Act to be established.

The appeal was allowed, and the orders made by the magistrate were set aside. The matter was remitted to the magistrate to consider and make findings on the existence of any equitable interest to which the appellant was entitled in the property. Depending on those findings, appropriate orders were to be made, including those relating to the sums payable by the appellant to the respondents and the appropriate costs orders. The appellant was also ordered to pay two-thirds of the respondents' costs of the appeal. The parties were given the liberty to apply for any further orders necessary to give effect to the judgment within seven days. If either party sought a variation of the order relating to the costs of the appeal, written submissions were to be filed within the same period.