Del Borrello v Australian Securities and Investments Commission

Del Borrello brought an application to the Federal Court for the reinstatement of a company that had been deregistered. The Australian Securities and Investments Commission opposed the application. The dispute concerned whether the company should be reinstated despite pending legal action against the probable insurer. The court was tasked with determining whether the application for reinstatement should proceed, given the impending litigation against the insurer.

The court examined whether the company's deregistration should be treated as final or if it should be reinstated pending the outcome of the action against the insurer. It needed to consider the balance of convenience and whether the reinstatement of the company would prejudice the insurer's potential claims. The court also had to assess whether the application for reinstatement was brought in good faith and whether there were any other factors that should influence the decision.

The court concluded that the application for reinstatement should not proceed at that time. It found that the balance of convenience favoured maintaining the deregistration status, particularly in light of the impending litigation against the insurer. The court held that allowing the reinstatement could potentially prejudice the insurer's claims and that the application did not meet the necessary criteria for reinstatement. Therefore, the court dismissed the application, or in the alternative, adjourned it pending further information.