The Court declared void under both ss 120 and 121 of the Bankruptcy Act 1966 (Cth) the transfer of two real properties from bankrupts in their personal capacity to themselves as trustees of a family trust, and the transfer of funds from a joint account ultimately into a trust account for the bankrupts' adult son. The transfers occurred after adverse costs orders were made against the bankrupts in Land and Environment Court proceedings, and the Court drew a compelling inference that the main purpose was to defeat creditors, rejecting the respondents' unsupported claims that the properties were always held on trust and the funds derived from their son's inheritance.
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