Mehajer v Weston in his capacity as Trustee of the Bankrupt Estate of Salim Mehajer

Mehajer v Weston in his capacity as Trustee of the Bankrupt Estate of Salim Mehajer concerns the review of a decision by the trustee, Weston, regarding the status of $6,530 found in the possession of the bankrupt, Mehajer. The dispute revolves around whether this money should be considered as after-acquired property, which would vest in the trustee, or whether it could be returned to Mehajer to cover his medical expenses and daily living costs. The case was heard in the Federal Court of Australia.

The primary legal issues the court had to decide were whether the trustee made an error or abused any relevant discretion in classifying the $6,530 as after-acquired property under section 58(1)(b) of the Bankruptcy Act 1966 (Cth). Additionally, the court had to consider whether the trustee’s decision should be set aside based on Mehajer's claims of financial hardship and the potential use of the funds for medical expenses.

The court examined the evidence and concluded that the trustee did not make any error in determining that the $6,530 was after-acquired property. The evidence presented did not sufficiently explain the source of the money or provide a clear connection to any identifiable transaction, leading the court to uphold the trustee's decision. The court emphasized the importance of the trustee's role in the day-to-day administration of the bankrupt's estate and noted that it would not intervene simply because it held a different view from the trustee. Consequently, the court dismissed Mehajer's application and ordered that the $6,530 remain with the trustee. The court also ordered Mehajer to pay the respondent's costs of $5,000 and released the trustee from his earlier undertaking to retain the money in a bank account.