National Australia Bank Limited v Strategic Brands Australia Pty Limited

National Australia Bank Limited brought an action against Strategic Brands Australia Pty Limited for default judgment over the payment of sums owing under a loan agreement. Strategic Brands subsequently applied to set aside the default judgment and to strike out its defence. The bank opposed the application, contending that Strategic Brands did not have an arguable case. The court was required to determine whether Strategic Brands had established that it had a real prospect of successfully defending the claim, which would require an arguable case.

The court considered the evidence provided by Strategic Brands and determined that there was no evidence to support the contention that there was an agreement to amend the loan terms, or that the bank had waived its right to enforce the original loan agreement. The court found that Strategic Brands had not demonstrated a real prospect of successfully defending the claim and dismissed the application to set aside the default judgment and to strike out the defence. The court held that Strategic Brands had not demonstrated that it had an arguable case and that the application was therefore bound to fail.

The court further held that the bank had established a prima facie case against Strategic Brands and that the default judgment should be enforced. The court dismissed the application to set aside the default judgment and to strike out the defence and ordered Strategic Brands to pay the bank's costs of the application. The court also ordered that the default judgment remain in force and that the bank was entitled to enforce it against Strategic Brands.