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Selected cases

Federal Court of Australia · [2026] FCA 122

Hall v Hemant Investments

A Federal Court default judgment case about loan repayment promises, property allotment representations and misleading or deceptive conduct.

Federal Court of Australia3 Mar 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • A promise that business money will be repaid, or replaced with a property interest, needs to be documented with real security and clear default rights.
  • A Federal Court default judgment case about loan repayment promises, property allotment representations and misleading or deceptive conduct.

Use this to check

  • Loan and property-allotment promises need clear documents, not only verbal assurances.
  • A misleading conduct claim can succeed at default judgment where the procedural admissions support it.
  • Unconscionable conduct may need more than the same facts used for misleading conduct.

Decision snapshot

  1. 1

    What happened

    • Anthony and Anne Hall brought proceedings against Hemant Investments Pty Ltd, Gerald Gavi and another respondent.
    • The case concerned money loaned to Hemant Investments.
    • The applicants alleged that Mr Gavi represented that if they loaned money to the company, it would be repaid within 12 months with capitalised interest of 20 percent, and that if repayment did not occur, they would receive an allotment in a Collingwood Park property equivalent to the loaned money and interest.
    • The respondents did not appear on the default judgment application.
  2. 2

    What the court had to decide

    • The Federal Court had to decide whether default judgment should be entered for misleading and deceptive conduct and unconscionable conduct based on representations about loan repayment, capitalised interest and an alternative property allotment.
  3. 3

    What the court decided

    • The Court entered judgment against Mr Gavi for misleading and deceptive conduct, with damages to be assessed.
    • It declined to enter default judgment on the unconscionable conduct claim on the face of the pleading, and reserved costs of the default judgment application.

Practical impact

Practical read

  • A promise that business money will be repaid, or replaced with a property interest, needs to be documented with real security and clear default rights.
  • If the borrower does not participate in the case, default judgment can still turn admissions into liability.

Useful next steps

  • Loan and property-allotment promises need clear documents, not only verbal assurances.
  • A misleading conduct claim can succeed at default judgment where the procedural admissions support it.
  • Unconscionable conduct may need more than the same facts used for misleading conduct.
  • Borrowers and guarantors should respond to proceedings quickly and carefully.
  • Document repayment date, interest, security and default rights before loan funds move.

Practical read

This case is short, but the small-business lesson is very practical. A loan promise tied to property development can sound reassuring, especially where the fallback is said to be an interest in land. But repayment, interest and property-allotment promises need legal machinery, not just sales language.

The Court entered default judgment against Mr Gavi for misleading and deceptive conduct, with damages to be assessed. The applicants also sought unconscionable conduct findings, but the Court was not satisfied on the face of the pleading that default judgment should be entered on that claim.

For business owners lending money, borrowing money or helping raise project finance, the lesson is to slow the deal down. Write the repayment date, interest, security, property interest, default process and personal guarantees clearly before funds move. If you are sued, ignoring the court process can turn alleged facts into admissions.

Checks to run

Key points

  • Document repayment date, interest, security and default rights before loan funds move.
  • Register or protect any promised property interest in the proper way.
  • Keep all emails, term sheets, investor presentations and payment records.
  • Do not describe a fallback property entitlement unless the legal mechanism exists.
  • Respond to court documents immediately if a loan dispute becomes litigation.

Key takeaways

  • Loan and property-allotment promises need clear documents, not only verbal assurances.
  • A misleading conduct claim can succeed at default judgment where the procedural admissions support it.
  • Unconscionable conduct may need more than the same facts used for misleading conduct.
  • Borrowers and guarantors should respond to proceedings quickly and carefully.

Related topics

Contracts & CommercialFinance, Payments & SecurityConsumer Law & Trading

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