Moltoni v Macks as Trustee of the Bankrupt Estate of Moltoni (No 2)

Moltoni v Macks as Trustee of the Bankrupt Estate of Moltoni (No 2) involved a dispute between the bankrupt, Moltoni, and the trustee of his bankrupt estate, Macks. Moltoni sought a review of a decision by the trustee, who had refused consent for Moltoni to travel overseas. The matter was heard in the Federal Court of Australia. The primary legal issue before the Court was whether it should direct the trustee to provide consent for Moltoni to travel to the United Kingdom and, if so, on what conditions. The Court had to consider the Bankruptcy Act 1966 (Cth) section 272 in making its decision.

The Court considered the evidence presented by Moltoni and his wife regarding the genuineness of Moltoni’s intention to relocate to the United Kingdom. The evidence demonstrated that Moltoni's wife was living and working in the United Kingdom, and Moltoni wished to reunite with her. The Court accepted that the reason for the proposed relocation was genuine, as Moltoni had been unable to engage in his chosen profession as a tax accountant in Australia, whereas he would be able to obtain employment in his profession in the United Kingdom. The Court also noted the significant impact of the forced separation on Moltoni's wife and the constraints on her ability to return to Australia. In addition, the Court examined the likelihood of Moltoni returning to Australia, considering his return for his daughter's wedding and his compliance with a departure prohibition order issued by the Australian Taxation Office. The Court found that Moltoni had strong ties to Australia, including family members residing there.

The Court concluded that Moltoni's need to travel was genuine and that there was a likelihood he would return to Australia. The Court directed the applicant and respondent to confer with a view to agreeing on the form of all undertakings and orders required to give effect to the reasons for judgment and for the respondent to decide whether he wished to conduct an examination of Moltoni before he left Australia for the United Kingdom. The agreed/disagreed orders and undertakings and notice of the trustee’s position about examining Moltoni were to be filed by email to the Associate to Jagot J by 5.00pm on 10 June 2020.