Tayar v Feldman [2022] FCA 1432

Federal Court of Australia

Tayar v Feldman [2022] FCA 1432 File number: VID 235 of 2022

Judgment of: MARKOVIC J

Date of judgment: 30 November 2022

Catchwords: BANKRUPTCY AND INSOLVENCY – application for review of a sequestration order made by a registrar – hearing de novo – where parties to the proceeding are rabbis and are each adherents to the Chabad Lubavitch movement, an orthodox Hasidic movement within Judaism – where parties entered into an agreement to refer the disputes which had arisen between them to arbitration – where the arbitration was conducted by three rabbis in accordance with the principles of orthodox Jewish law – where the arbitration award was recognised by the Supreme Court of Victoria – whether there is "other sufficient cause" to dismiss the creditor's petition on the basis that the applicant has not participated in a "Mesadrin" – whether applicant estopped from pursuing an enforcement proceeding in a secular court – whether collateral contract between the parties by which they agreed to deal with the question of enforcement according to Jewish law – whether case of unilateral mistake – whether abuse of process – application dismissed

Legislation: Bankruptcy Act 1966 (Cth) ss 40, 43, 52 Commercial Arbitration Act 2011 (Vic) ss 34, 34A, 35, 36 Federal Court of Australia Act 1976 (Cth) Federal Court (Bankruptcy) Rules 2016 (Cth)

Cases cited: Bechara v Bates (2021) 286 FCR 166 Ramsay Health Care Australia Pty Ltd v Compton (2017) 261 CLR 132 Stratton v Bowles (No 2) [2015] FCA 43; 12 ABC(NS) 404 Tayar v Feldman [2020] VSC 66 Totev v Sfar [2006] FCA 470; (2006) 230 ALR 236