Aravanis v Neffati (No.3)

In *Aravanis v Neffati (No.3)*, Street J of the Federal Court of Australia considered an application by the trustee in bankruptcy of Mr. Neffati, an individual who had been declared bankrupt in France, seeking recognition of the French bankruptcy proceedings in Australia. The trustee sought to enforce certain orders made by the French court, including the transfer of property located in Australia. The respondent, Mr. Neffati, opposed the application, arguing that the French proceedings should not be recognised or enforced in Australia.

The central legal issue before the Court was whether the Australian court had the power to recognise and give effect to foreign insolvency proceedings, specifically a French bankruptcy, and to enforce orders made by a foreign court in relation to property situated in Australia. This involved an examination of the interplay between the *Bankruptcy Act 1966* (Cth), the *Cross-Border Insolvency Act 2008* (Cth), and the principles of private international law concerning the recognition of foreign judgments and insolvency proceedings.

Street J determined that the *Cross-Border Insolvency Act 2008* (Cth), which gives effect to the United Nations Model Law on Cross-Border Insolvency, provided the framework for the recognition of foreign insolvency proceedings. The Court found that the French proceedings qualified as foreign insolvency proceedings under the Act. Crucially, the Court held that s.10 of the *Cross-Border Insolvency Act 2008* conferred the necessary power on the Federal Court to recognise the foreign proceeding and to make orders necessary for its administration in Australia, including the enforcement of foreign court orders, provided certain conditions were met. The Court applied the principles of comity and the objectives of cross-border insolvency law, which aim to facilitate cooperation and provide an orderly framework for dealing with insolvencies with a cross-border dimension.

The Court made orders recognising the French bankruptcy proceedings as a foreign insolvency proceeding and granted the trustee leave to proceed with the enforcement of the French court's orders concerning the Australian property.