Café Du Liban Pty Ltd v Bespoke Garage Pty Ltd

The appellant, Café Du Liban Pty Ltd, pursued legal action against the respondent, Bespoke Garage Pty Ltd, in relation to a debt. Following a successful outcome in the Federal Circuit Court, Café Du Liban obtained a judgment against Bespoke Garage. The dispute escalated to the Federal Court of Australia, where the primary issue revolved around the respondent's application for a reduction in the judgment liability, specifically through an instalment order. The crux of the matter lay in the respondent's failure to object to the application within the stipulated timeframe, and the subsequent request for an extension to file the objection.

The court was tasked with determining whether the respondent's application for an extension of time to object to the instalment order was justified, and if so, under what circumstances such an extension could be granted. Additionally, the court had to assess whether the steps taken by the judgment creditor, Café Du Liban, to enforce the judgment, including the service of a bankruptcy notice and a statutory demand for payment, influenced the respondent's ability to comply with the procedural requirements.

In ruling on the matter, the court noted that the respondent had not filed a timely objection to the application for the instalment order. Despite this, the court acknowledged the respondent's efforts to address the default by applying for an extension of time. The court found that the respondent's application was made promptly after becoming aware of the default and that the judgment creditor had taken steps to enforce the judgment, which might have impeded the respondent's ability to respond in a timely manner. Consequently, the court granted the application for an extension of time, allowing the respondent to file the objection. The judgment debtor was ordered to pay the costs associated with the application for the extension of time.