austlii:cth/FedCFamC2G/2026/294
General information, not legal advice.
FedCFamC2G
2026-03-02
Original judgment source is linked above.
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA (DIVISION 2)
KAILASH LAWYERS PTY LTD ACN 604 582 550 T/AS KAILASH LAWYERS AND CONSULTANTS
Note: The form of the order is subject to the entry in the Court's records.
Note: The Court may vary or set aside a judgment or order to remedy minor typographical or grammatical errors (r 24.04(g) Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (Cth)), or to record a variation to the order pursuant to r 24.04 Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025 (Cth).
(a) Application in a Proceeding filed 21 March 2025, by Mr Patial;
(b) Interim Application filed 15 April 2025, by Mr Patial;
(c) Objection to Subpoena filed 15 May 2025, by Kailash Lawyers, issued to Australia and New Zealand Banking Group Ltd on 2 May 2025;
(d) Objection to Subpoena filed 15 May 2025, by Kailash Lawyers, issued to Australia Taxation Office on 2 May 2025;
(e) Objection to Subpoena filed 15 May 2025, by Kailash Lawyers, issued to Kailash Lawyers Pty Ltd on 2 May 2025;
(f) Objection to Subpoena filed 15 May 2025, by Kailash Lawyers, issued to National Australia Bank Ltd on 2 May 2025;
(g) Interim Application filed 15 May 2025, by Kailash Lawyers, seeking orders setting aside the subpoenas to Australia and New Zealand Banking Group Ltd, Australia Taxation Office, Kailash Lawyers Pty Ltd, and National Australia Bank Ltd;
(h) Creditor's Petition filed 8 November 2024 and opposition; and
(i) Oral application for recusal.
Judge Obradovic proceeded to deliver a judgment favourable to the petitioning creditor in circumstances where Her Honour had not provided any procedural directions in relation to the outstanding interlocutory applications, had not sought from the parties any estimate of the time required for the proper hearing of those matters, had not afforded the parties an opportunity to file written submissions, and ultimately heard and determined the proceeding without prior notice or directions as to the manner in which the applications would be dealt with.[3]
On 26 May 2025, Judge Obradovic made a false and misleading statement during hearing proceedings, asserting Mr Amit Pall and Kailash Lawyers Pty Ltd had complied with subpoenas dated 2 May 2025. Court transcript of 26 May 2025 records this. However, evidence confirms neither Mr Pall, nor the corporate creditor, nor the banks (NAB and ANZ) produced subpoenaed documents by the due date (22 May 2025).
HER HONOUR: I'm not prepared to make the orders that you're asking me to make in terms of procedure. The notices of objection have been filed. I propose to deal with the notices of objection and, if required, the application to set aside the subpoena. So, first of all, the notice of objection filed on 15 May 2025, that was filed by Kailash Lawyers Proprietary Limited in respect of the subpoena to ANZ. Those documents have been produced, but because of the notice of objection, they have not been released.
MR PATIAL: So the Kailash Lawyers have produced the documents?
HER HONOUR: The documents have been produced, but they have not been released.[5]
HER HONOUR: Thank you. The court notes that the subpoena issued to the Australian Taxation Office has been withdrawn. I also note that it appears that the ATXO [sic] - the Australian Taxation Office - has filed - I withdraw that - has produced documents in answer to that subpoena which the respondent has withdrawn. I therefore make an order setting aside the subpoena, as it still appears to be on the court file, and an order for the documents produced by the Australian Taxation Office to be returned and/or destroyed, as appropriate. Next, the notice of objection filed on 15 May 2025 issued by the applicant in respect of the subpoena to Kailash Lawyers Proprietary Limited - that objection being an objection to the production of the documents, on the basis that the subpoena should be set aside. So, Mr Edney, do you wish to say anything in addition to what's contained in your outline of submission?[6]
What Mr Patial says about the Recusal Application
70. As Gleeson CJ and Gummow J observed in that case at [71]:
"The question is not whether a decision-maker's mind is blank; it is whether it is open to persuasion."
- In the same case, Hayne J noted at [185] the several distinct elements underlying the assertion that a decision-maker has prejudged or will prejudge an issue, or the assertion that there is a real likelihood that a reasonable observer might reach that conclusion. The first is the contention that the decision-maker has an opinion on a relevant aspect of the matter in issue in the particular case. The second is the contention that the decision-maker will apply that opinion to the matter in issue. The third is the contention that a decision-maker will do so without giving the matter fresh consideration in light of whatever may be the facts and arguments relevant to the particular case.
- His Honour observed at [186] that allegations of actual bias through prejudgment often fail at the third step he had identified. This was because notwithstanding whatever expression of preconceived opinions by the decision-maker, it does not follow that the evidence will be disregarded.
- The test of actual bias in the form of prejudgment requires an assessment of the state of mind of the judge in question: Michael Wilson & Partners Limited v Nicholls & Others [2011] HCA 48; 244 CLR 427 at 437 [33]. However, actual bias need not be confined to an intentional state of mind. Bias may be subconscious, provided it is real: Bilgin v Minister for Immigration and Multicultural Affairs (Bilgin v Minister) [1997] FCA 1022; (1997) 149 ALR 281 at 289-290 per Finkelstein J; Sun v Minister at 127 per Burchett J and 135 per North J. As Finkelstein J said in Bilgin v Minister at 290:
"The wrong involved is the failure to decide a case impartially. Whether that failure was deliberate or not should be beside the point insofar as the validity of the decision is concerned."
- The circumstances in which actual bias can be demonstrated solely from the published reasons for decision must be considered to be rare and exceptional: SCAA v Minister for Immigration and Multicultural and Indigenous Affairs [2000] FCA 668 at [38] per von Doussa J, who explained:
"... Reasons for decision reflect conclusions reached at the end of the decision making process, and if the decision is against the party complaining, the expression of adverse findings on credit and fact are an inevitable part of the expression of the reasons. The mere fact of adverse findings at the end of the matter give rise to no inference as to the state of mind of the decision maker before and whilst the matter was under consideration, nor of prejudgment of the issues that fell for decision. Even where it is possible to show that the adverse findings or some of them are contrary to the evidence or unreasonable, or that the reasoning process is hopelessly flawed, that without more is unlikely to demonstrate that the decision maker had embarked on the case with a closed mind, not open to persuasion. However, where the party alleging actual bias can point not only to an adverse judgment containing demonstrable error but also to conduct by the decision maker antithetical to that party's interests such as a hostile attitude throughout the hearing or ... an inference of actual bias by prejudgment might then be more readily drawn. But even then the circumstances are likely to be rare and exceptional that the combination of factors and circumstances will clearly prove actual bias."
(1) Identification of what it is said might lead a judge to decide a case other than on its legal and factual merits; and
(2) Identify the logical connection between the matter and the feared deviation from the course of deciding the case on its merits.[12]
(1) The decision-maker has an opinion on a relevant aspect of the matter in issue in the particular case;
(2) The decision-maker will apply that opinion to that matter in issue;
(3) The decision-maker will do so without giving the matter fresh consideration in the light of whatever may be the facts and arguments relevant to the particular case; and
(4) The question which is said to have been prejudged is one which should be considered afresh in the particular case.[13]
Although it is important that justice must be seen to be done, it is equally important that judicial officers discharge their duty to sit and do not, by acceding too readily to suggestions of appearance of bias, encourage parties to believe that by seeking the disqualification of a judge, they will have their case tried by someone thought to be more likely to decide the case in their favour.[19]
... if the mere making of an insubstantial objection were sufficient to lead a judge to decline to hear or decide a case, the system would soon reach a stage where, for practical purposes, individual parties could influence the composition of the bench. That would be intolerable.[20]
... two things need to be remembered: the observer is taken to be reasonable; and the person being observed is "a professional judge whose training, tradition and oath or affirmation require [the judge] to discard the irrelevant, the immaterial and the prejudicial ...[21]
The Procedural Fairness Complaint and the Application to Set Aside Court Orders
(a) s 25 of the Federal Circuit and Family Court of Australia Act 2021 (Cth), which applies to the Federal Circuit and Family Court of Australia (Division 1), being a different court to the one which is hearing this application and in which these proceedings have been filed;
(b) s 52(2) of the Bankruptcy Act 1966 (Cth), which provides for the Court's discretionary power to dismiss a creditor's petition;
(c) the Court Rules, whether:
(i) r 25.11 of the Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2021, which speaks for applications for writ, order or other means of enforcement of a judgment, and was in any event replaced by the 2025 rules from 1 September 2025;
(ii) r 25.11 of Federal Circuit and Family Court of Australia (Division 2) (General Federal Law) Rules 2025, which applies in Migration proceedings; or
(iii) r 25.11 of Federal Circuit and Family Court of Australia (Division 2) Bankruptcy Rules 2021, which does not exist;
The power of each Court over its own process is unlimited; it is a power incident to all Courts, inferior as well as superior; were it not so, the Court would be obliged to sit still and see its own process abused for the purpose of injustice.[25]
... it must be emphasized that the jurisdiction is not to be exercised for the purpose of re-agitating arguments already considered by the Court; nor is it to be exercised simply because the party seeking a rehearing has failed to present the argument in all its aspects or as well as it might have been put. What must emerge, in order to enliven the exercise of the jurisdiction, is that the Court has apparently proceeded according to some misapprehension of the facts or the relevant law and that this misapprehension cannot be attributed solely to the neglect or default of the party seeking the rehearing. The purpose of the jurisdiction is not to provide a backdoor method by which unsuccessful litigants can seek to re-argue their cases.[27]
I certify that the preceding sixty-three (63) numbered paragraphs are a true copy of the Reasons for Judgment of Judge Obradovic.
[1] The Applicant ultimately did not press the relief sought in paragraph 1.
[2] Kailash Lawyers Pty Ltd v Patial [2025] FedCFamC2G 1432 at [20].
[3] Amended Application in a Proceeding filed 14 November 2025.
[4] It was confirmed with Mr Patial at the hearing on 17 February 2026, that he said "smears", although it may be that the word he meant to use was "sneers".
[7] Reid v Commercial Club (Albury) Ltd [2014] NSWCA 98 at [68]- [74].
[8] Johnson & Johnson [2000] HCA 48; (2000) 201 CLR 488 at [11] ("Johnson & Johnson"); Ebner v Official Trustee in Bankruptcy [2000] HCA 63 at [83] ("Ebner").
[9] Feldman v Nationwide News Pty Ltd [2020] NSWCA 260; (2020) 103 NSWLR 307 at [41], citing Ebner (n 8) at [7]-[9], [33].
[13] Minister for Immigration & Multicultural Affairs v Jia Legeng [2001] HCA 17 at [185].
[14] Edinger & Duy [2023] FedCFamC1A 194 at [21], citing Galea v Galea (1990) 19 NSWLR 263 at 281-282.
[19] Re JRL; Ex parte CJL [1986] HCA 39; (1986) 161 CLR 342 at [5] (per Mason J).
[21] Saklani & Valder [2023] FedCFamC1A 163 ("Saklani & Valder") at [31], citing Johnson & Johnson (n 8) at [12].
[22] Johnson & Johnson (n 8) at [13].
[23] Mohareb v Kelso (No 2) [2018] NSWCA 246 at [15].
[25] Jeffrey & Katauskas Pty Ltd v SST Consulting Pty Ltd [2009] HCA 43 at [27], citing Cocker v Tempest [1841] EngR 242; (1841) 7 M & W 502 at 503-4; [1841] EngR 242; 151 ER 864 at 865.
[26] Australian Competition & Consumer Commission v Black on White Pty Ltd [2004] FCA 363 at [14] ('Black on White').
[27] Autodesk Inc v Dyason (No 2) [1993] HCA 6; (1993) 176 CLR 300 at [4], cited in Black on White (n 26) at [16].
Kailash Lawyers
Patial
(2000) 201 CLR 488
(1993) 176 CLR 300
(2020) 103 NSWLR 307
(1997) 149 ALR 281
(1990) 19 NSWLR 263
(1986) 161 CLR 342