Kuhadas v Gomez

In *Kuhadas v Gomez*, the applicant sought to set aside a bankruptcy notice that was based on a foreign judgment registered in Australia pursuant to the *Foreign Judgments Act 1991* (Cth). The respondent had obtained a judgment in the Singapore High Court, which was subsequently registered in Australia. The applicant, as the judgment debtor, contended that the bankruptcy notice should be set aside.

The primary legal issues before the court were whether bankruptcy courts possess the power to review or "go behind" an order made under the *Foreign Judgments Act* for the registration of a foreign judgment, and whether the applicant had provided substantial reasons to question the validity of the registered Singapore judgment. Specifically, the applicant argued that the Singapore judgment had been discharged by agreement, which would render it liable to be set aside under section 7(2)(a)(ix) of the *Foreign Judgments Act*.

Judge Manousaridis determined that bankruptcy courts do have the power to consider whether a registered foreign judgment is liable to be set aside under the *Foreign Judgments Act*. The court found that the applicant had presented substantial reasons to question the enforceability of the Singapore judgment, as there was evidence suggesting the judgment had been discharged by agreement between the parties. Consequently, the court concluded that the bankruptcy notice, which was predicated on this potentially discharged judgment, ought to be set aside.