Barnden (Trustee), in the matter of Ross (Bankrupt) v Macedo

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Barnden (Trustee), in the matter of Ross (Bankrupt) v Macedo (No 2) [2026] FCA 8 (16 January 2026)

Last Updated: 19 January 2026

FEDERAL COURT OF AUSTRALIA

Barnden (Trustee), in the matter of Ross (Bankrupt) v Macedo (No 2) [2026] FCA 8

File number(s):

NSD 1694 of 2024

Judgment of:

YOUNAN J

Date of judgment:

16 January 2026

Catchwords:

BANKRUPTCY - ex parte application for injunction under s 30(1)(b) of the Bankruptcy Act 1966 (Cth) - freezing orders granted to prevent third party dealing with, or exercising rights in relation to, registered mortgage - risk of conduct diminishing the value of bankrupt estate

PRACTICE AND PROCEDURE - application for substituted service of interlocutory application under rr 10.24 and 10.27 of the Federal Court Rules 2011 (Cth) - service on the registered office of third party where address may not be genuine

Legislation:

Bankruptcy Act 1966 (Cth) s 30(1)(b)

Federal Court Rules 2011 (Cth) rr 7.32, 10.24 and 10.27

Division:

General Division

Registry:

New South Wales

National Practice Area:

Commercial and Corporations

Sub-area:

Commercial and Corporations Insolvency

Number of paragraphs:

18

Date of hearing:

16 January 2026

Counsel for the Applicants:

Dr G Dempsey

Solicitor for the Applicants:

Chamberlains Law Firm

ORDERS

NSD 1694 of 2024

IN THE MATTER OF THE BANKRUPT ESTATE OF RAYMOND ROSS

BETWEEN:

ANDREW BARNDEN IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF RAYMOND ROSS

Applicant

AND:

DEIRDRE ANN MACEDO

First respondent

CHRISTOPHER ROSS

Second respondent

ORDER MADE BY:

YOUNAN J

DATE OF ORDER:

16 JANUARY 2026

THE COURT ORDERS THAT:

1. The applicants have leave to file the interim application dated 14 January 2026 and is returnable instanter.
2. Pursuant to rule 7.32 of the Federal Court Rules 2011 (Cth) and s 30(1)(b) of the Bankruptcy Act 1966 (Cth), upon the applicant, by its Counsel, giving the usual undertaking as to damages specified in Schedule 1 to Annexure A of these orders, an order be made in the form specified in Annexure A of these orders.
3. The time for service of the interim application and supporting affidavits is abridged and service is to be effected by 4:00 pm on 19 January 2026.
4. Pursuant to rules 10.24 and 10.27 of the Federal Court Rules, the interim application and supporting affidavits may be served on CIGA Property Finance Pty Ltd (ACN 634 449 899) (CIGA), together with a copy of these orders, by sending the same by email (including by way of link to a shared folder to the affidavit materials) to [email protected] and to [email protected], and to the registered office of CIGA at 95 Bawden Street, Tumbulgum, NSW 2490.
5. The interim application otherwise be listed for hearing on a date to be determined by the docket or duty judge.
6. CIGA be granted liberty to apply to set aside or vary these orders on 24 hours' notice to the parties in writing.
7. Costs be reserved.

THE COURT NOTES THAT:

1. The applicant seeks to have the interim application listed for hearing on 23 January 2026.
2. The applicant gives the undertakings set out in Schedule 1 to Annexure A.
3. The applicant relies on the affidavits set out in Schedule 2 to Annexure A.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

ANNEXURE A:

Freezing Order (Made without Notice)

Federal Court of Australia

District Registry: New South Wales Registry

Division: General No: NSD1694/2024

ANDREW BARNDEN IN HIS CAPACITY AS TRUSTEE OF THE BANKRUPT ESTATE OF RAYMOND ROSS

Applicant

DEIRDRE ANN MACEDO CHRISTOPHER ROSS

Respondents

PENAL NOTICE

TO:

CIGA Property Finance Pty Ltd (ACN 634 449 899)

IF YOU (BEING THE PERSON BOUND BY THIS ORDER):

(A)

(B)

REFUSE OR NEGLECT TO DO ANY ACT WITHIN THE TIME SPECIFIED IN THIS ORDER FOR THE DOING OF THE ACT; OR

DISOBEY THE ORDER BY DOING AN ACT WHICH THE ORDER REQUIRES YOU NOT TO DO,

YOU WILL BE LIABLE TO IMPRISONMENT, SEQUESTRATION OF PROPERTY OR OTHER PUNISHMENT.

ANY OTHER PERSON WHO KNOWS OF THIS ORDER AND DOES ANYTHING WHICH HELPS OR PERMITS YOU TO BREACH THE TERMS OF THIS ORDER MAY BE SIMILARLY PUNISHED.

TO: CIGA Property Finance Pty Ltd (ACN 634 449 899)

This is a 'freezing order' made against you on 16 January 2026 by Justice Younan at a hearing without notice to you after the Court was given the undertakings set out in Schedule 1 to this order and after the Court read the affidavits listed in Schedule 2 to this order

THE COURT ORDERS THAT:

Introduction

1. Subject to the next paragraph, this order has effect until further order.
2. Anyone served with or notified of this order, including you, may apply to the Court at any time to vary or discharge this order or so much of it as affects the person served or notified.
3. In this order:

(a) 'applicant', if there is more than one applicant, includes all the applicants;

(b) 'you', where there is more than one of you, includes all of you and includes you if you are a corporation;

(c) 'third party' means a person other than you and the applicant;

1. (a) If you are ordered to do something, you must do it by yourself or through directors, officers, partners, employees, agents or others acting on your behalf or on your instructions.

(b) If you are ordered not to do something, you must not do it yourself or through directors, officers, partners, employees, agents or others acting on your behalf or on your instructions or with your encouragement or in any other way.

Freezing of assets

1. Until 23 January 2026, CIGA be restrained, by itself, agents or servants from advancing or agreeing to advance or lend any monies, encumbering, selling, assigning or otherwise dealing with registered mortgage AV117889 or exercising any rights in respect of 46 Northcote Street, Naremburn, New South Wales (Lot 20, Section 29 on Deposited Plan 4241).

SCHEDULE 1 UNDERTAKINGS GIVEN TO THE COURT BY THE APPLICANT

(1) The applicant undertakes to submit to such order (if any) as the Court may consider to be just for the payment of compensation (to be assessed by the Court or as it may direct) to any person (whether or not a party) affected by the operation of the order.

(2) As soon as practicable, the applicant will file and serve upon the respondent copies of:

(a) this order;

(b) the application for this order for hearing on the return date;

(c) the following material in so far as it was relied on by the applicant at the hearing when the order was made:

(i) affidavits (or draft affidavits);

(ii) exhibits capable of being copied;

(iii) any written submission; and

(iv) any other document that was provided to the Court.

(d) a transcript, or, if none is available, a note, of any exclusively oral allegation of fact that was made and of any exclusively oral submission that was put, to the Court;

(e) the originating process, or, if none was filed, any draft originating process produced to the Court.

(3) As soon as practicable, the applicant will cause anyone notified of this order to be given a copy of it.

(4) The applicant will pay the reasonable costs of anyone other than the respondent which have been incurred as a result of this order, including the costs of finding out whether that person holds any of the respondent's assets.

(5) If this order ceases to have effect the applicant will promptly take all reasonable steps to inform in writing anyone to who has been notified of this order, or who he has reasonable grounds for supposing may act upon this order, that it has ceased to have effect.

(6) The applicant will not, without leave of the Court, use any information obtained as a result of this order for the purpose of any civil or criminal proceedings, either in or outside Australia, other than this proceeding.

(7) The applicant will not, without leave of the Court, seek to enforce this order in any country outside Australia or seek in any country outside Australia an order of a similar nature or an order conferring a charge or other security against the respondent or the respondent's assets.

SCHEDULE 2

AFFIDAVITS RELIED ON

Name of deponent Date affidavit made

(1) Michael Lalji 14 January 2026

(2) Andrew James Barnden 24 September 2025

(3) Deirdre Ann Macedo 27 October 2025

(4) Santhosh Mahendra 19 August 2025

NAME AND ADDRESS OF APPLICANT'S LAWYERS

The applicant's lawyers are:

Chamberlains Law Firm, Michael Lalji L12, 59 Goulburn Street Sydney NSW 2000 T: 02 9264 9111 D: 02 6188 3652

[email protected]

REASONS FOR JUDGMENT

Delivered ex tempore, revised from transcript

YOUNAN J

INTRODUCTION

1. The applicant is the trustee of the bankrupt estate of Raymond Ross (Bankrupt).
2. The applicant seeks an ex parte injunction against CIGA Property Finance Pty Ltd (CIGA) encumbering or exercising rights under a registered mortgage in relation to the bankrupt estate 46 Northcote Street, Naremburn, New South Wales, registered in the name of the Bankrupt's sister, Deirdre Macedo (the first respondent).
3. The injunction is sought initially until the hearing of an application on notice to extend the caveat.
4. The mortgage became registered (and transferred to CIGA) despite the trustee having lodged a caveat against the title.
5. This dealing was discovered when the applicant was served a lapsing notice (in relation to the caveat) initiated by CIGA on 7 January 2026. The caveat will lapse unless an order extending the caveat is lodged by 28 January 2026.
6. Importantly, a freezing order was issued by Kennett J on 24 September 2025, and extended by Perry J on 4 November 2025 (until further order), against the first respondent. The bankrupt estate is the subject of those orders.

EVIDENCE

1. The applicant relies on several affidavits, most notably the affidavit of Michael Lalji sworn on 14 January 2026 (Lalji Affidavit). That affidavit annexes the affidavit of Leathitia Chua sworn on 5 November 2025 in the context of Supreme Court proceedings (Chua Affidavit).
2. The Chua affidavit was marshalled predominantly in support of the claim that Paul McMahon, the sole owner and director of CIGA, had committed various fraud offences. I expressed reservation in relying on the affidavit for that purpose.
3. In addition, Counsel for the applicant drew my attention to two decisions: a sentence appeal in the NSW Court of Criminal Appeal, and a decision of the NSW Civil and Administrative Tribunal, both of which noted Mr McMahon's convictions for fraud and dishonesty. In particular, Counsel relied on the Court of Criminal Appeal's description of Mr McMahon as a "conman" or "confidence trickster". In granting the relief sought, it was not necessary to go beyond the fact of those findings.

DISPOSITION

Ex parte Injunction

1. I am satisfied that it is appropriate to grant the injunction sought under s 30(1)(b) of the Bankruptcy Act 1966 (Cth).
2. First, the length of the injunction sought is modest and concerned with the determination of the applicant's caveat in relation to the bankrupt estate.
3. Second, I am satisfied that the circumstances of the registered mortgage acquired by the director of CIGA (for no consideration), are unusual.
4. Third, I accept that there is a risk the bankrupt estate may be encumbered or otherwise dealt with in a way that diminishes the value of the estate. My assessment of that risk is commensurate with the brevity of the injunction sought.
5. In assessing that risk, it is relevant to note the findings of the NSW Court of Criminal Appeal, and the NSW Civil and Administrative Tribunal, which recite Mr McMahon's convictions for fraud and dishonesty. It is not necessary, however, to find, as the applicant has urged, that there is a danger that the mortgage may be used by Mr McMahon to defraud third parties.
6. In assessing that risk, it is also relevant that a creditor's petition was filed agai

This is an opening excerpt, not the complete document.