Osborne v Gangemi [2011] FCA 1252

FEDERAL COURT OF AUSTRALIA

Osborne v Gangemi [2011] FCA 1252 Citation: Osborne v Gangemi [2011] FCA 1252

Parties: RICHARD OSBORNE and KOUROSH JAFARI v ANTONIO GANGEMI, STEPHEN ROBERT DIXON (AS TRUSTEE OF THE PROPERTY OF ANTONIO GANGEMI, THE DEBTOR) and JOHN ADAMS (AS TRUSTEE OF THE PROPERTY OF ANTONIO GANGEMI, THE DEBTOR) RICHARD OSBORNE v ANTONIO GANGEMI

File number(s): VID 742 of 2009 VID 790 of 2009

Judges: BROMBERG J

Date of judgment: 4 November 2011

Catchwords: BANKRUPTCY AND INSOLVENCY – Section 222(1) of the Bankruptcy Act 1966 (Cth) – whether the Court should set aside Personal Insolvency Agreement on grounds of unreasonableness or because it is not calculated to benefit the interests of creditors generally – amount available for distribution trivial or negligible when compared to the debtor's total debts – debtor's affairs call for further investigation – closeness of the vote of creditors a relevant factor – Personal Insolvency Agreement set aside and sequestration order made.

Legislation: Bankruptcy Act 1966 (Cth) ss 5, 64D, 64ZA, 89A, 116, 120-122, 156A(3), 188, 222, 231

Cases cited: Bloomingdale Holdings Pty Ltd v 63 Buckley Street Pty Ltd [2008] VSC 168 Gangemi v Osborne & Anor; Bloomingdale Holdings Pty Ltd & Anor v 63 Buckley Street Pty Ltd & Ors [2009] VSCA 297 Westpac Banking Corporation v Hingston (No 2) [2010] FCA 1116 Re Richards: Ex parte Beneficial Finance Corporation Limited [1986] FCA 74 Re Brennan: Ex parte Stokes (Australasia) Limited (unreported FCA 31 May 1988) Re Codrington: Ex parte Don McKay Tourist and Charter Pty Ltd [1989] FCA 349 Palazzolo v Ex Parte Discusso [1991] FCA 317 NZI Capital Corporation Limited v Lancaster (1991) 30 FCR 441 Lancaster v NZI Capital Corporation Limited [1991] FCA 471 Re Lockett: Ex parte Northern Equity Limited and Others [1992] FCA 142 Re Emmett Ex parte: Beneficial Finance Corporation Limited v Emmett [1991] FCA 632