Zreika v Royal

The appeals before the court concern orders made by a judge of the Federal Court of Australia in relation to transfers of shares in various companies and dispositions of various properties. The respondents sought relief under sections 37A of the Conveyancing Act 1919 (NSW) and 121 of the Bankruptcy Act 1966 (Cth). The court was required to decide whether the primary judge correctly found that dispositions of various properties were made for nominal consideration with the intent to defraud creditors, whether the appellant was entitled to raise a new defence on appeal, and whether the primary judge's refusal to approve a deed under the Corporations Act 2001 (Cth) was an interlocutory order. The court also considered whether the primary judge correctly exercised a discretion to make a lump sum order for costs on a joint and several basis.

The court found that the primary judge did not err in finding that dispositions of various properties were made for nominal consideration with the intent to defraud creditors. The court upheld the adverse credit findings against the appellants and held that the primary judge did not err in distinguishing a previous case. The court held that the appellant was not entitled to raise a new defence on appeal, and that the primary judge's refusal to approve the deed was not an interlocutory order. The court also found that the primary judge did not err in exercising a discretion to make a lump sum order for costs on a joint and several basis.

The final orders of the court were that the respondents in each appeal file and serve draft minutes of order reflecting the conclusions in these reasons within fourteen days. Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.