GEL Custodians Pty Ltd v RQ Consultants Pty Ltd

In the Federal Court of Australia, GEL Custodians Pty Ltd sought to recover a debt owed by RQ Consultants Pty Ltd. The plaintiff obtained a summary judgment against the defendant for the outstanding debt. A warrant was issued in respect of two properties. The loan agreement between the parties contained a clause that prevented the defendant from setting off or counterclaiming against the plaintiff. The defendant applied to set aside the summary judgment and to stay the warrant, arguing that there was an arguable case for counterclaim. The court had to decide whether the defendant had established an arguable case to set aside the judgment and stay the warrant.

The court held that the defendant had not established an arguable case to set aside the judgment. The loan agreement contained a clause that expressly precluded the defendant from setting off or counterclaiming against the plaintiff. The court found that the defendant had not provided any evidence to support its counterclaim. The court held that the defendant's application to set aside the judgment and stay the warrant was without merit.

The court dismissed the defendant's application to set aside the summary judgment and to stay the warrant. The court lifted the stay imposed by the previous order, which had been made on 12 May 2010. The court held that the plaintiff was entitled to enforce the judgment and to proceed with the sale of the two properties. The court ordered that the stay imposed by order 12 May 2010 in matters S 161 of 2010 and S 162 of 2010 be lifted forthwith.