The ABC has uncovered another case of an Australian couple abandoning a surrogate baby, this time in India with the knowledge of officials at the Australian High Commission in New Delhi.

The Chief Justice of the Family Court, Diana Bryant, says the case shows why there needs to be a national inquiry into surrogacy.

A joint investigation by ABC News and Foreign Correspondent can reveal the case involves a set of twins born in India via a surrogate to Australians who had gone through a surrogacy agency.

Chief Justice Bryant says consular officials revealed to her there was pressure from Australia to provide a visa to allow them to return one baby to Australia, as the commissioning parents did not want both babies.

It is understood the choice of baby was based on gender.

Chief Justice Bryant was told by consular officials about the case in 2012 and she says they were deeply traumatised.

"They told me the surrogate mother had given birth to twins and the Australian couple only wanted one of the children," Chief Justice Bryant said.

"I don't know whether it was a boy or a girl. They already had one sex and they didn't want the other child.

"These women were extremely concerned about what was happening. They were doing the best they could, they told me, to persuade the parents to take both children, to negotiate with them."

Chief Justice Bryant told the ABC that in the meantime the consular staff delayed giving the Australian parents a visa while they tried to convince them to take both children home.

It was at this time the consular officials told the Chief Justice that pressure was being applied from someone in Australia.

"In the meantime they were getting pressure from Australia to grant the visa," she said.

"They told me in the end they couldn't persuade the couple to take both children and they had to grant the visa to bring the one child back.

"I asked them what happened to the other child. They said someone in the end had come forward - and they said they were known to the family - and took the child, but they expressed to me their great concern that in fact money had changed hands."

Chief Justice Bryant said if it was true that a sum of money changed hands so another family would take the abandoned child, that could be tantamount to human trafficking and a criminal offence.

"I think it is appalling. It's a breach of all sorts of human rights conventions and it's a criminal offence in many places if that is so," she said.

She stressed the consular staff were not at fault, saying they had to operate in a legal vacuum where the laws are far from straightforward or clear.

Concern Australian politician advocated on behalf of parents

Other sources have confirmed to the ABC there was concern a senior federal politician had been advocating on behalf of the Australian parents.

Sorry, this video has expired Australian officials implicated in Indian surrogacy case

Chief Justice Bryant says she does not know where the pressure came from or whether the politician knew the full extent of the case.

"Yes, there definitely was some pressure being placed to expedite the process to ensure they could return to Australia ... that's what I have been told," she said.

"The whole issue of surrogacy is greatly concerning, especially when there are circumstances where the parents can choose the sex of the child and so we are commodifying children."

Bob Carr, who was Labor's foreign minister from March 2012 until September 2013, has told the ABC he does not recall any international surrogacy issue coming across his desk and did not contact the Australian High Commission about the case in question.

"I don't recall them, you're asking me to recall every piece of correspondence I had in 18 months as Foreign Minister but nothing stands out," he said.

"I don't recall surrogacy coming up in terms of our ... the bi-lateral relationship between Australia and India, and I did not contact the Australian High Commission."

Asked what he would have done if such a case had come before him he said: "I don't know. I'd take the advice of my department."

Mr Carr would not say if he thought it would be appropriate for a foreign minister to advocate on behalf of parents wanting to leave a baby born via surrogacy in India.

"This is entirely hypothetical. I don't recall any intervention I made with India on surrogacy during the time I was foreign minister," he said.

Sorry, this video has expired Surrogacy scandal 'clearly relates to the previous government': Bishop

Foreign Minister Julie Bishop says she has no information from her department about about the case.

"I have seen the allegations and of course I would be concerned if a life of a child was put at risk in any way," Ms Bishop said.

"Presumably the Department of Foreign Affairs and Trade could go back through its records but I'm not able to access the former activities and advice of the previous government.

"Perhaps [former] prime minister (Julia) Gillard, perhaps former foreign minister (Kevin) Rudd may know something about it but if the ABC has sources and information and evidence then they could provide it to the Attorney-General's office to look into the matter."

A spokeswoman for Mr Rudd says representatives of his office from the time say they are not familiar with the case.

"Consular matters are best responded to by the Department who holds such records," the spokeswoman said.

Calls for a national inquiry

The case comes after it was revealed Gammy, a baby boy with Down syndrome, had been left behind in Thailand by his Australian parents.

The couple returned to Western Australia with Gammy's healthy twin sister and it was later revealed his father had been convicted of sexually abusing children.

The Chief Judge of the Federal Circuit Court, John Pascoe, has called for a national inquiry into surrogacy.

In an interview with ABC News, he said the Family Court and Federal Court had been left with dealing with a process that did not have appropriate legislation governing the practice.

He said it was traumatising court staff.

"I've spent many sleepless nights. I've heard things and I've seen things that I really don't think anyone should see ... and I find it deeply distressing that nothing is being done about the issue," he said.

"I am really concerned that this issue has not received the attention it properly deserves.

"I think Australia is a country of decent people where international obligations are respected. We have obligations in human rights and I think it is very important that we step up to them."

Asked whether the Government would commission an inquiry into surrogacy, Ms Bishop said: "I raised my concerns previously in relation to the Thai case and met with some Thai officials about that to ensure that whatever changes they made to their laws would also transition to cover the cases where people had actually already entered into an arrangement," she said.

"But we have laws in Australia, state laws that cover surrogacy."