Offermans v Trusted Buzz Pty Ltd

In *Offermans v Trusted Buzz Pty Ltd*, the applicants, as trustees in bankruptcy, sought to have certain transactions entered into by the bankrupt, Gregory John O’Keeffe, declared void. The dispute concerned the transfer of real property and a sum of money to entities controlled by relatives of the bankrupt shortly before his bankruptcy. The core of the applicants' claim was that these transactions were either for an illegal purpose, enacted to defeat creditors, or involved assets sold at an undervalue. The matter was heard by Judge Burnett.

The court was required to determine whether the transfer of the property at 102 Haynes Street, North Rockhampton, and the transfer of $98,000 to the second respondents, were void against the applicants under section 120 of the *Bankruptcy Act 1966* (Cth). Further issues included whether the subsequent transfers by the second respondents were void under section 121 of the *Bankruptcy Act 1966* (Cth) and section 228 of the *Property Law Act 1974* (Qld), and the validity of notices issued by the Official Receiver to the respondents under section 139ZQ of the *Bankruptcy Act 1966* (Cth).

Judge Burnett found that the transfer of the property was void as against the applicants pursuant to section 120 of the *Bankruptcy Act 1966* (Cth). The court declared that the applicants were entitled to an interest in the property equivalent to the bankrupt's interest, less the consideration of $215,000 paid by the first respondent. Similarly, the transfer of $98,000 to the second respondents was declared void under section 120 of the *Bankruptcy Act 1966* (Cth) and section 121 of the *Bankruptcy Act 1966* (Cth), with subsequent transfers by the second respondents also deemed void under section 228 of the *Property Law Act 1974* (Qld). The notices issued by the Official Receiver were also upheld as valid.

Consequently, the court ordered the first respondent to pay the applicants the sum of $33,000 within 60 days, along with $11,536.44 for interest.