Scott (Trustee), in the matter of Stolyar (Bankrupt) v Stolyar

The parties in this case are the Trustee in bankruptcy, Scott, and Stolyar (Bankrupt). The dispute is regarding the recovery of several properties or interests in those properties, which the Trustee claims are held on trust for the bankrupt estates. The legal issues that the court was required to decide include whether the properties or interests in those properties are held on trust for the bankrupt estates, whether the transfer of certain property was an undervalued transaction or a transaction to defeat creditors and thus void against the Trustee, and whether the proceeding should be stayed because it is unfair in the Walton v Gardiner sense.

The court found that the evidence presented by the Trustee was sufficient to establish that the assets were held on trust for the bankrupt estates. The court also found that the transfer of certain property was void against the Trustee, and that the proceeding should not be stayed. The court relied on a process of inferential reasoning in some cases, where direct evidence was not available. The court concluded that the cumulative weight of the circumstantial evidence was sufficient to support the Trustee's claims.

The final orders of the court are that the parties are to confer and provide draft orders to the Associate to Markovic J giving effect to these reasons including in relation to the question of costs of the proceeding. If the parties cannot agree on the form of proposed orders, they are each to provide the Associate to Markovic J with a form of proposed orders giving effect to these reasons including in relation to the question of costs and submissions, not exceeding 10 pages in length. The proceeding will then be listed on a mutually convenient date for case management hearing in order to resolve the form of orders.