Inspector-General in Bankruptcy v Hartnett [2025] FCA 111

FEDERAL COURT OF AUSTRALIA Inspector-General in Bankruptcy v Hartnett [2025] FCA 111 File number(s):

Judgment of: DOWNES J

Date of judgment: 24 February 2025

Catchwords: BANKRUPTCY AND INSOLVENCY – application pursuant to section 222(1) Bankruptcy Act 1966 (Cth) to set aside personal insolvency agreement entered pursuant to Part X of that Act – meaning of "in force" in section 222(1) – whether the terms of the agreement are unreasonable or are not calculated to benefit the creditors generally – whether any other reason to set aside the agreement – sequestration order sought by creditor pursuant to section 222(10) Bankruptcy Act 1966 (Cth) – where first respondent arranged for invoices to be issued in his name and arranged for those purported creditors to vote in favour of personal insolvency agreement – where major creditor which voted in favour of personal insolvency agreement was a related party controlled by the first respondent's spouse – where controlling trustees were not provided with complete information – finding of abuse of process by first respondent – personal insolvency agreement set aside and sequestration order made

Bankruptcy Act 1966 (Cth) ss 222, 222(1), 222(2), 222(8), 222(10), 222(11) Legislation: Bankruptcy Legislation Amendment Act 2004 (Cth) s 142 Evidence Act 1995 (Cth) ss 56(2), 78, 136 Insolvency Practice Rules (Bankruptcy) 2016 (Cth) r 75-132(1)

Alexiou v Australia and New Zealand Banking Group Limited (Application to Amend Pleading) [2025] FCA 7 Beau Timothy John Hartnett trading as Hartnett Lawyers v Anthony Robert Bell as Executor of the Estate of the late Mabel Dawn Deakin-Bell (No 2) (2023) 113 NSWLR 381; [2023] NSWCA 311 Bell v Hartnett Lawyers (No 3) (2022) 112 NSWLR 463; [2022] NSWSC 1204 Hingston v Westpac Banking Corporation (2012) 200 FCR 493; [2012] FCAFC 41 Cases cited: Moss v Gunns Finance Pty Ltd (2018) 131 ACSR 462; [2018] FCAFC 185 Mouglalis v Bendigo and Adelaide Bank Ltd (2017) 250 FCR 92; [2017] FCAFC 47 New Age Constructions (NSW) Pty Ltd v Etlis (2013) 11 ABC (NS) 542; [2013] FCA 884 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 Ritson v Commissioner of Police (NSW) [2021] FCAFC 208 Tamaya Resources Ltd (in liq) v Deloitte Touche Tohmatsu [2015] FCA 1098