Jack and Inspector-General in Bankruptcy

This matter concerned an application by Mr Phillip Jack to review a decision of the Inspector-General in Bankruptcy not to cancel an objection to his discharge from bankruptcy. The objection was based on special grounds under section 149D(1) of the *Bankruptcy Act 1966* (Cth). The applicant's salary was paid into his wife's bank account, and these funds were used to repay the mortgage over a house owned by his wife. The applicant argued that he lacked a reasonable excuse for this conduct.

The primary legal issue before the court was whether the applicant had provided a reasonable excuse for his conduct, which the trustee alleged constituted a special ground for objecting to his discharge under section 149D(1) of the *Bankruptcy Act 1966* (Cth). Specifically, the court considered whether the applicant's lack of a personal bank account constituted a reasonable excuse for his salary being paid into his wife's account and used for her mortgage. The court also considered whether the trustee's objection, based on grounds including section 149D(1)(ab) (void transfers), section 149D(1)(d) (failure to provide information), and section 149D(1)(e) (failure to disclose income), should be cancelled.

Deputy Boyle P found that the applicant had failed to provide a reasonable excuse for his conduct. The court reasoned that the prohibition under section 149N(1A) of the Act applied, meaning that certain grounds of objection, including the one based on section 149D(1)(ab), could not be cancelled. Given this finding, it was unnecessary to consider the objections based on sections 149D(1)(d) and (e). The court affirmed the decision of the delegate of the Inspector-General not to cancel the objection to the applicant's discharge from bankruptcy.