Bosnjak v Farrow Mortgage Services Pty Ltd(in Liquidation)

The New South Wales Court of Appeal heard an appeal concerning a dispute between Mr. Bosnjak and Farrow Mortgage Services Pty Ltd (in liquidation). The core of the disagreement revolved around the validity of certain loan agreements and the subsequent actions taken by the company, particularly in light of its liquidation.

The central legal issues before the Court of Appeal were whether the loan agreements entered into by Mr. Bosnjak with Farrow Mortgage Services were void ab initio due to contravention of the *Companies (Acquisition of Shares) Act 1980* (Cth) and, if so, what were the consequences for the parties' respective rights and obligations. The court also considered whether the liquidator had acted appropriately in seeking to enforce the terms of these agreements.

The Court of Appeal, in its reasoning, examined the provisions of the *Companies (Acquisition of Shares) Act 1980* and relevant case law concerning void contracts. It determined that the loan agreements were indeed void due to non-compliance with the statutory requirements. Consequently, the court found that Farrow Mortgage Services, through its liquidator, could not rely on the void agreements to recover moneys from Mr. Bosnjak. The principle applied was that a party cannot enforce a contract that is rendered illegal and void by statute.

The Court of Appeal allowed the appeal, setting aside the orders made by the primary judge. The liquidator's claim against Mr. Bosnjak was dismissed.