Khazali v Lion Finance Pty Ltd

In the District Court of New South Wales, Judge Altobelli presided over proceedings between Khazali, the applicant, and Lion Finance Pty Ltd, the respondent. The dispute concerned an application by Khazali to set aside a default judgment that had been entered against him in favour of Lion Finance. Khazali sought to have this judgment, which was based on an alleged breach of a loan agreement, vacated on the grounds that he had not been properly served with the originating process.

The central legal issue before the court was whether Khazali had been effectively served with the statement of claim and summons. Lion Finance contended that service had been effected in accordance with the rules of the court, specifically by leaving the documents at Khazali's last known residential address. Khazali, however, maintained that he had not resided at that address for a significant period prior to the purported service and therefore had no knowledge of the proceedings until after the default judgment was entered.

Judge Altobelli considered the evidence presented by both parties regarding the service of documents and Khazali's residential status. The court applied the principles governing service of originating process, which require that reasonable steps be taken to bring the proceedings to the attention of the defendant. After reviewing the affidavits and submissions, the court found that Lion Finance had failed to demonstrate that service had been effected in a manner that was likely to bring the proceedings to Khazali's notice. The evidence indicated that Khazali had moved from the address prior to the attempted service, and that Lion Finance had not taken sufficient steps to ascertain his current whereabouts.

Consequently, the court ordered that the default judgment entered against Khazali be set aside. Khazali was granted leave to defend the claim, and the proceedings were to continue on the merits of the underlying dispute.