Super Vision Resources Ltd v AC Holdings Co Pty Ltd (No 2)

The appeal before the Court of Appeal of New South Wales concerned a dispute between Super Vision Resources Ltd (the appellant) and AC Holdings Co Pty Ltd and others (respondents), specifically relating to transfers of property made by Lawrence Xu. Super Vision sought to set aside these transfers, alleging they were made with intent to defraud creditors, and sought declarations and orders regarding the proceeds of sale and legal costs.

The primary legal issues before the court were whether the transfers of two properties by Lawrence Xu to AC Holdings were voidable as alienations of property made with intent to defraud creditors under s 37A of the Conveyancing Act 1919 (NSW). The court also considered whether AC Holdings was a purchaser in good faith without notice of the intent to defraud, and consequential orders regarding the proceeds of sale and legal costs incurred by the respondents.

The Court of Appeal found that the transfers were indeed made with intent to defraud creditors within the meaning of s 37A. It reasoned that AC Holdings had not established it was a purchaser in good faith without notice of Lawrence Xu's fraudulent intent, rendering the transfers void as between AC Holdings and Lawrence Xu. Consequently, the court allowed the appeal, set aside the primary judge's orders, and made declarations that the transfers were void. The court further ordered that the credit balance of a controlled moneys account be paid to the trustee-in-bankruptcy of Lawrence Xu, and that AC Holdings and Qiao Wang repay specific legal fees from that account to the trustee. Orders were also made for the respondents to pay Super Vision's costs of the proceedings at first instance and the appeal.