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)}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 \f2\fs24\lang5129\langfe5129\cgrid\langnp5129\langfenp5129 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 IN THE HIGH COURT OF FIJI \par At Suva \par Civil Jurisdiction \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par CIVIL ACTION NO. 116 OF 1991 \par \par Between: \par \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 THE OFFICIAL RECEIVER \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 [Prov. Liquidator of Pinnacle \par Frozen Foods Ltd. (in liquidation)] \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442\charrsid15406442 Applicant}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par - and - \par \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 NATIONAL BANK OF FIJI}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Respondent \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par Mr. H. Lateef for the Official Receiver \par Mr. R. Patel for the Respondent \par \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 RULING \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In this application the Official Receiver as provisional liquidator of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Pinnacle Frozen Foods Ltd.}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (hereafter referred to as}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the company'}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 )}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 by a summons dated the}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 12th of February 1991}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 seeks to set aside as}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 fraudulent preferences'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 several payments totalling }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 $13,565.01}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 made by the company to the respondent bank between the}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 7th}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 and}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 23rd of September 1983}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par At the hearing of the application learned counsel for the bank somewhat belatedly raised a preliminary issue that the action was}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 statute-barred}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par In particular, counsel drew the court's attention to the provisions of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 4}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Limitation Act Cap. 35}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 which provides}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (inter alia)}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "4(1) The following actions shall not be brought after the expi ration of six years from the date on which the cause of action accrued, that is to say - \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li1440\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (a)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 actions founded ... on tort; \par }\pard \ql \li1440\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li1440\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (d)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 actions to recover any sum recoverable by virtue of any Act, other than a penalty or forfeiture ..."}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par Put simply counsel's argument was that the payments were made to the bank in}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 September 1983}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 and the present action to recover them based as it is on a }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "tort"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 was not instituted until}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 February 1991 (}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 i.e.}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 almost 8 years after the event which is 1 1/2 years out of time)}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par Learned counsel for the Official Receiver argued however that until the 16th of February 1987 the Official Receiver's}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 cause-of-action'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 had not }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "accrued"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 in terms of Section 4(1).}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In addition he relied on the }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 saving'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 provisions of }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 15}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Limitation Act}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Cap.}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid9065857 }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 35 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 which provides}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (inter alia)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "15.}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Where, in the case of any action for which a period of limitation is prescribed by this Act ... either - \par \par }\pard \ql \li1440\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (a)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the action is based upon the fraud of the defendant ... or any person through whom he claims; \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid9065857 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li1440\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 or \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid9065857 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li1440\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin1440\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (b)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the right of action is concealed by the fraud of any such person; \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the period of limitation shall not begin to run until the plaintiff has discovered the fraud, ... or could with reasonable diligence have discovered it ...}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par In counsel's submission the Official Receiver's cause-of-action did not}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 accrue'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 until after the bank had categorically rejected his claim to the payments which event did not occur until the bank's letter of}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 16th February 1987 (}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 i.e.}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 4 years to the date of the present summons)}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par In other words until the bank denied that the payments it had received were}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 fraudulent preferences'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the possibility always existed that it may have agreed with the Official Receiver's claim and voluntarily made-over the payments to him as provisional liquidator of the company. \par \par If I may say so this latter submission has only a superficial attraction and in any event is incorrect. \par \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 46}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Bankruptcy Act Cap. 37}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 under which the present cause-of-action falls to be considered is a deeming provision which renders any successfully impugned payment }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... fraudulent and void as against the trustee in bankruptcy"}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par In my view there is nothing that needs to be done by an alleged }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 preferred creditor'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 before a payment which falls within the statutory prohibition can be challenged by the trustee in bankruptcy. \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 True the existence of the payment must be uncovered before it can be challenged, but once uncovered, the section itself lays down the circumstances under which it may be attacked. \par \par Needless to say in my view even if the bank had admitted that it was }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 preferred'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 by the company in respect of the payments being challenged that does not thereby absolve the court from having to consider and decide the issue of the relevant state of the debtor's mind at the time of making the payment.}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Such an admission, in the unlikely event that it was forthcoming, would be only one of the factors to be considered by the court in seeking to ascertain the debtor's intention at the relevant time. }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 See}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Mehta and Anor v. Official Receiver}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 8 FLR 184.)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par Furthermore even accepting without deciding that }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 15}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Limitation Act Cap. 35}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 applied in this case, this court's view would remain unchanged.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par The Section in clear terms postpones the commencement of the period of limitation, for an action based on fraud or where the cause of action has been fraudulently concealed, }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... until the plaintiff has }{\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 discovered}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the fraud ...}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 or}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 could with reasonable diligence have }{ \b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 discovered}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 it"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 .}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (my underlining) \par \par In this regard}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Romilly M.R.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 a master of equity said as long ago as 1861 in }{ \b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Marquis of Clanricarde v. Henning}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 132 RR 227 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 at 231}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... in these cases time begins to run from the period at which the fraud was discovered.}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 That is the principle of all the cases.}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Until the fraud is discovered the time d oes not operate; but the fraud is considered to be discovered at the time when such reasonable notice of what has happened has been given to the person injured, as to make it his duty, if he intend to seek redress, to make}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 enquiry, and to ascertain the circumstances of the case."}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par Clearly }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "discovery" }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 precedes investigation and confirmation. \par \par In this instance both the existence and preferential nature of the company's payments was first brought to the attention of the Official Receiver in a letter dated the }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 23rd of March 1984}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 from a secured creditor of the company.}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 It was then in my view that the fraud}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (if any)}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 was }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "discovered"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 for the purposes of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 15}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par Further if the submission of learned counsel for the Official Receiver was correct then the date on which the cause of action}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 accrued'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 could be unilaterally and indefinitely postponed by the mere inactivity of the claimant such as to render nugatory any time limitation at all, and that could never have been the intention of the legislature. \par \par Even if this interpretation or approach were wrong the Court would nevertheless have to consider whether or not in the exercise of its equitable jurisdiction, to refuse relief to the Official Receiver on the ground of his acquiescence or laches.}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (}{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 See}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 26 of the Limitation Act.)}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Sir Barnes Peacock}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 delivering the judgment of the Privy Council in }{ \b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Lindsay Petroleum Company v. Hurd}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1874) 5 LR PC 221}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 said of the}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 doctrine of Laches'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 at p. 239 and 240: \par \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "Where it would be practically unjust to give a remedy, either because the party has, by his conduct done that which might fairly be regarded as equivalent to a waiver of it, or where by his conduct and neglect he has though perhaps not waiving that remedy, yet put the other party in a situation in which it would no t be reasonable to place him if the remedy afterwards were to be asserted, in either of these cases, lapse of time and delay are most material ...}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Two circumstances always important in such cases, are, the length of the delay and the nature of the acts done during the interval, which might affect either party and cause a balance of justice or injustice in taking the one course or the other, so far as relates to the remedy."}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par In this latter regard the precise payments would have been confirmed from bank statements of the company made available to the Official Receiver at about the end of April 1986 pursuant to his request dated the}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 14th of April 1986}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 , and, although the }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "precise amounts"}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the payments could be said to have been }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 known'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 only then}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 i.e.}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 within 6 years of the institution of proceedings)}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 there can be no doubt in this Court's mind that the payments had been or could have been }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 discovered}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 ' much earlier had the Official Receiver exercised }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "reasonable diligence"}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 in the matter. \par \par Instead the available correspondence indicates that after learning of the payments in }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 1984}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the Official Receiver procrastinated for over }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 2 years}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 before even requesting the bank for the relevant statements of the company }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 and} {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 , after receiving them, a further }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 7 months}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 elapsed before a }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 demand'}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 was made for the return of the payments.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Then, after the bank's denial of liability in}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 February 1987}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 , the Official Receiver waited a further }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 4 years}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 before instituting the present proceedings for the recovery of the payments! \par \par No effort has been made to explain or account for these }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 7 years}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 delay'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 which are directly attributable to the Official Receiver, and the bank not unjustifiably complains that it is prejudiced in presenting the facts and producing other relevant documents in the account. \par \par The }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Earl of Halsbury L.C.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 in }{ \b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Watt v. Assets Company}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1905) AC 317}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 at p.333 in refusing relief on an alleged fraudulent concealment in an action brought after 20 years said}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... at this distance of time I shall make every intendment in favour of that having been honestly done which purported to be done.}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 I think I should expect some evidence to be produced contradicting that state of things rather than insist on evidence in its support at this distance of time and with the loss of evidence that undoub tedly has occurred from the delay that has taken place ... which has been the fault of those who are pursuers here - that is to say they have lain by upon their supposed rights all this time, during which time witnesses have died and the means of explanat i on have disappeared also to an extent which, to my mind, renders it impossible, or at all events extremely inexpedient as a matter of law and administration, to allow these things to be ripped up at this distance of time, when both the opportunities of ex planation have gone by and when witnesses have passed away."}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par Needless to say there is no evidence nor was it suggested that the bank was a party to any }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 fraudulent' or improper conduct of the company or was in any way responsible for the delay in bringing these proceedings and, although nothing is known of the present whereabouts of the officers of the company, its account with the bank }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "...}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 has been closed for more than 6 years"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par For the foregoing reasons this Court upholds the banks preliminary objection and finds that this action is}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 statute-barred}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 and may not be brought or entertained by the Court. \par \par If however the above conclusion should be wrong then in deference to the extensive arguments addressed to the Court on the merits of the application, I turn to consider the Official Receiver's substantive application for a declaration that the payments made by the company to the bank were }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 fraudulent preferences'}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 46(1)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Bankruptcy Act Cap. 37}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 provides so far as relevant for present purposes}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "Every ... payment made, ... by any person unable to pay his debts as they become due from his own money, in favour of a creditor, with a view to giving such creditor ..., a preference over the other creditors, shall, if the person ... paying the same is adjudged bankrupt on a bankruptcy petition presented within three months after the date of ... paying the same, be deemed fraudulent and void as against the trustee in the bankruptcy."}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par By virtue of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 261}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 of the }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Companies Act Cap. 216}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 this provision a pplies equally to any payments made by a company that is subsequently wound-up within the statutory time period. \par \par It is sufficiently clear from the wording of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Section 46}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 that }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 4 conditions}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 must be established before any payment can be said to be a}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 fraudulent preference'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 .}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 These are, in the present context: \par \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Firstly}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 : }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 that on the dates of the payments }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (i.e. between the 7th and 23rd of September 1983)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 the company was unable to pay its debts as they became due from its own money; \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Secondly}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 : }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 that the payments were made in favour of a creditor; \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Thirdly}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 : }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 that the company was wound up within 3 months of the payments; and \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Lastly}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 : }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (and perhaps most difficult of all to prove)}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 that the payments were made by the company with a view to giving the bank a preference over its other creditors. \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In this case neither party has called any oral evidence nor was there a request to cross-examine the deponents of the 3 affidavits and annexures filed in Court of which }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 2 are from the Official Receiver and 1 from an officer of the bank.}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 No evidence has been forthcoming from the company or its officers and the Court must decide this application on the barest of evidence. \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Be that as it may there appears to be little dispute over the facts and evidence that satisfies this Court that the first }{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 3}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 conditions have been met and these may be briefly set out in chronological order as follows}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Between the 7th and 23rd of September 1983 the company made payments totalling $13,565.01 into its overdraft account with the bank; \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (2)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 On the 3rd of October 1983 a petition for the winding-up of the company was presented before the Supreme Court;}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 and \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (3)}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 On the 11th of November 1983 the company was ordered to be wound-up and the Official Receiver was appointed the provisional liquidator of the Company.}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Several matters are immediately clear from those 3 undisputed facts namely, that within 3 months prior to}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 its winding-up the company made several payments to a creditor and, although it is not entirely clear on what ground(s) the petition to wind-up the company was based, the 2nd affidavit of the Official Receiver contains an assertion that }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... the company was insolvent and/or was unable to pay its debts ..."}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 at the time of the payments. \par \par In the circumstances the sole issue that remains to be determi ned by the Court is whether the Official Receiver has discharged the onus of proving upon a review of all the circumstances of the case that the dominant intent of the company when making the payments was to prefer the bank over its other creditors. \par \par In ot her words in the absence of direct or circumstantial evidence of such an intent the question for the court to decide is whether upon the facts in this case a dominant intent in the mind of the company to prefer the bank was so much the most probable of th e possible explanations of its action in making the payments into the bank that the Court could properly hold it to be the true explanation.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (per }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Jenkins L.J.}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 in }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In re Cutts}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1956) 1 WLR}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 739}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 .)}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In this regard the parties have advanced 2 }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "possible explanations"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 for the payments.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 The Official Receiver deposed that }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... the directors of the company knew that the company was unable to pay its debts and its creditors were pressing unsuccessfully for payment and in the circumstances the company intended to prefer the bank",}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 whereas the bank says that }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... the payments were done in the ordinary course of business and further to reduce the overdraft sum owing to the Bank"}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par It is common ground that the company maintained an account with the respondent bank.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 It is als o undisputed that the company at the relevant time also had an account with the }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Bank of New Zealand}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (as it then was)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 .}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 That these payments were made to one bank account and not to another does not in my view of itself give rise to an inescapable or}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 '}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 most probable'}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 inference that the company intended to prefer one to the detriment of the other. \par \par Nothing is known of the extent of the company's liability to the }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Bank of New Zealand}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 or of the nature of the account other than that it was secured by a debenture and other than the fact of the winding-up nothing is known about the grounds of the petition or who the petitioning creditor was, if indeed there was one.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Needless to say no statutory demand notice has been produced and the law provides no less than 5 grounds for the winding-up of a company by the Court exclusive of an inability to pay due debts. \par \par Nothing is known about the level and frequency of any payments, bankings or trading that was being conducted at about that time by the company through either bank account or to any other creditor}{ \i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (other than the contested payments)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 or how far the liquidation of the company has progressed}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (if at all)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par The present whereabouts of the directors of the company is unknown nor does there appear to have been any correspondence exchanged with them or the company.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Certainly none was produced and the Official Receiver's assertion that }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... creditors were pressing unsuccessfully for payment of their accounts ..."}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 remains a bald unsubstantiated assertion of doubtful weight.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Indeed the number of creditors to whom the company owed monies is not disclosed nor its total indebtedness and assets. \par \par Then it is claimed the payments were made to pay a debt owed by the company directors and guarantor, but nothing has been produced to support this contested assertion and in any event it is not known if the payments resulted in the company's entire overdraft with the bank being extinguished. \par \par In supporting the application learned counsel for the Official Receiver relied heavily on }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In re Kushler Limited}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1943) 1 Ch.D 248}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 as bearing some striking similarity to the present case.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 I cannot agree.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 In that case the directors had guaranteed a bank overdraft and although they had been advised that the company was insolvent, they knowingly made several vol untary payments to their bank extinguishing the company's overdraft and thereby obtaining for themselves }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "... a direct and immediate benefit"}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . \par \par This is clear from the words of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Lord Greene}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 MR when he said at p.251}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par \par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "These cases of guarantees of overdraft and securities}{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 deposited to cover overdrafts are very common, and where directors have given guarantees the circumstances of a strong element of private advantage resulting from payment of the debt may justify the court in attaching to the other facts much greater weight than would have been}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 attached to similar facts in a case where that element did not exist."}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 On the other hand learned counsel for the bank referred the Court to }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Re F.L.E. Holdings Ltd}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 . }{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (1967) 3 All E.R. 553}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 which was a case where an insolvent company within a month of its winding-up voluntarily executed a first charge over lands to secure its bank overdraft.}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 It was there \par \par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\tx1440\hyphpar0\faauto\rin0\lin720\itap0\pararsid15406442 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 "}{ \b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Held}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 : }{ \b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 The execution of the legal charge ... was not a fraudulent preference of the bank ... because on the evidence, (t he debtor's) dominant intention at that time was to keep on good terms with the bank in the hope of future facilities, not to confer on the bank a benefit or advantage."}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par The authorities are clear that the question whether a transaction is a fraudulent pre ference, that is to say, whether the debtor had the dominant intention to prefer a creditor is one of fact for the Court, and must be judged not from one fact, however important, but from all the circumstances of the case. \par \par It is also well settled that the onus of proof in these cases is upon the person seeking to avoid the transaction to establish what the debtor really intended and that the real intention was to prefer (}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 per}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid15406442 :}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Lord Tomlin}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 in }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Peat v. Gresham Trust Ltd}{ \b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 .}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 1934 AC 252 }{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 at 262).}{\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid11230370 \par }{\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 Bearing in mind t hat the onus in this case is upon the Official Receiver to establish the true intent of the company in making the payments to the bank and mindful of the extreme paucity of the evidence in that regard both direct and circumstantial, this Court is driven t o the inevitable conclusion that the applicant has failed to discharge that burden and accordingly this summons must and is hereby dismissed with costs to the respondent. \par \par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\hyphpar0\faauto\rin0\lin0\itap0\pararsid11230370 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 (D.V. Fatiaki) \par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 JUDGE \par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid15406442 {\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 \par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710\charrsid15406442 At Suva, \par 6th December, 1991.}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11679710 \par }\pard \qr \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid11230370 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid13254591 HBC0116D.91S}{ \f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid11230370\charrsid11230370 \par }}