Grocon Constructors (Vic) Pty Ltd v Dexus Funds Management Limited as Trustee for the Dexus 480Q Trust

Grocon Constructors (Vic) Pty Ltd applied to the Federal Court for an extension of time to comply with a statutory demand issued by Dexus Funds Management Limited as Trustee for the Dexus 480Q Trust. The court was asked to decide whether to extend the time for Grocon (Vic) to comply with the statutory demand, given that the demand had been varied and Grocon (Vic) had applied for leave to appeal against the variation. The court considered the balance of convenience, the prospects of success of the appeal, and the potential prejudice to the parties in reaching its decision.

The court concluded that it was appropriate to grant a short extension of time, specifically 21 days from the date of the earlier orders. This extension was considered sufficient to allow the application for leave to appeal to be heard on an expedited basis by another judge of the Court. The court weighed the potential prejudice to both parties, with Grocon (Vic) facing the risk of insolvency if it did not comply with the demand and Dexus potentially suffering if the amount recoverable in a liquidation of Grocon (Vic) was reduced. The court found that the appeal had a plausible prospect of success, and thus granting the extension was in the interests of justice.

The court's final orders were that the time for compliance with the statutory demand be extended to 21 days after 22 July 2019, or such other period as the Court may order. The costs were reserved.