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1944 Supreme(SC) 3

Privy Council At Cyprus
Clauson, Wright , Justice Lords Macmillan, JJ.
Vassiliades -Appellant
Versus
Vassiliades and another -Resopndent
Privy Council Appeal No. 32 of 1942
Decided On : 06-03-1944

Advocates Appeared:
Bischoff and Co., Hill, Carter, Tompkins, Cain, Colin Pearson, S.N. Bernstein, Richard O’Sullivan

Lord Wright:-

The two main issues in the appeal are: (1) whether the District Court and the Supreme Court were right in upholding the present respondents' claim that certain transfers and mortgages should be set aside (2) whether there were circumstances in the conduct of the trial before the District Court which entitle the appellant to object that the case had not been fairly tried. If the appellant were to succeed in whole or in part on the former issue, she would be entitled to judgment to that extent on the application. If she were to succeed on the latter issue, she would be entitled to an order for a new trial. The transfers and mortgages in question were granted to the appellant by her father Hadji Nicolas Vassiliades, who was adjudicated bankrupt on a petition filed by the appellant in September 1930. His trustee in bankruptcy was substituted for him in the proceedings, and is now respondent 2. Respondent 1, Artemis N. Vassiliades, a son of the bankrupt and a brother of the appellant, had obtained two judgments against his father, one dated 10th June 1937 for £200 with interest and costs on two bonds, in an action commenced on 7th November 1935, the other dated 25th June 1938 for £428 10s. with interest and costs in an action commenced by him on 12th November 1935. It is this latter action and judgment out of which these proceedings arise. The respondent having failed to obtain satisfaction for his judgment, on 24th April 1939 took out a summons claiming that the transfers and mortgages set out in schs. A, B, C and D all of which were executed in favour of the appellant, should be set aside "as effected with intent to hinder or delay" his father's creditors and in particular respondent 1. The appellant intervened in the summons as ex parte respondent. The respondent filed an affidavit setting out the grounds of his application, which was based on Law 7 of 188C Ss. 2 and 3, as amended by S. 2 of Law 10 of 1927. The sections in their amended form, are as follows :

"2. (1) Every gift, sale, pledge, mortgage or other transfer or disposal of any movable or immovable property made by any person with intent to hinder or delay his creditors or any of them in recovering from him, his or their debts shall be deemed to be fraudulent, and shall be invalid as against such creditor or creditors; and, notwithstanding any such gift, sale, pledge, mortgage or other transfer or disposal, the property purported to to transferred or otherwise dealt with may be seized and sold in satisfaction of any judgment debt due from the person making such gift, sale, pledge, mortgage or other transfer or disposal.

(2) In any application under the provisions of this law to set aside a transfer or assignment of any property made to any parent, spouse, child, brother, or sister of the transferor or assignor otherwise than in exchange for money or for other property of equivalent value or for good consideration the onus of proving that such transfer or assignment was bona fide and not made with intent to hinder or delay his creditors shall rest upon the transferor or assignor and upon the person to whom such transfer or assignment has been made.

(3) No sale, mortgage, transfer or assignment made in exchange for money or other property of equivalent value shall be voidable, under the provisions of the law, unless the purchaser, mortgagee, transferee, or assignee shall be shown to have accepted it with knowledge that such sale, mortgage, transfer, or assignment was made by the vendor, mortgagor, transferor, or assignor with intent to delay or defraud his creditors,

3. Any gift, sale, pledge, mortgage or other transfer or disposal of any movable or immovable property deemed to be fraudulent under the provisions of S. 2 of this Law whether made before or after the commencement of an action or other proceeding wherein the right to recover the debt has been established may be set aside by an order of the Court, to be obtained on the application of any judgment cre















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