In the matter of Two Italian Boys Holdings Pty Limited (ACN 158 310 671)

In the Federal Court of Australia, Two Italian Boys Holdings Pty Limited (ACN 158 310 671) pursued specific performance against the first defendant, asserting claims under a deed of settlement. The first defendant claimed set-offs against the plaintiffs' claims, and the court was required to determine whether the deed of settlement could be amended to account for these set-offs, and if enforcing the deed would necessitate ongoing judicial supervision.

The primary legal issues were whether the deed of settlement could be adjusted to reflect the set-offs claimed by the first defendant and if enforcing the amended deed would require the court's continued involvement. The plaintiffs argued that the deed should be enforced as written, while the first defendant contended that any enforcement would require continuous court oversight, which was not feasible.

The court concluded that the deed of settlement could indeed be amended to incorporate the set-offs claimed by the first defendant. It was held that enforcing the amended deed did not necessitate ongoing judicial supervision. The court found that the plaintiffs were entitled to specific performance of the amended deed, thereby resolving the dispute in favour of the plaintiffs.

The court ordered that the deed of settlement be amended to account for the set-offs claimed by the first defendant. The court further directed that the amended deed be enforced, and the first defendant was instructed to comply with the terms of the amended deed. The plaintiffs were awarded their costs of the application.