National Australia Bank Limited v Zhang, Guang Qing

In the Federal Circuit Court, the National Australia Bank Limited sought to enforce a default judgment against Zhang, Guang Qing, in a matter concerning possession of property. The bank claimed that Zhang had failed to vacate premises after the expiration of a lease, and sought an order for possession and associated costs. Zhang sought to set aside the default judgment, arguing that there was an arguable defence and that the delay in serving the statement of claim should be taken into account. The court was required to determine whether there was a valid defence to the bank's claim and if the delay in serving the statement of claim was a factor that should influence the setting aside of the default judgment.

The court examined the circumstances of the service of the statement of claim and the reasons for the delay, finding that the bank had not adequately explained the delay. The court also considered whether Zhang had an arguable defence, focusing on whether the lease had indeed expired and whether Zhang had an entitlement to remain in possession. The court found that there was a possibility that the lease had not expired and that Zhang had an arguable defence based on the terms of the lease and the bank's failure to provide proper notice. Given the arguable defence and the unexplained delay in serving the statement of claim, the court concluded that the default judgment should be set aside.

The court ordered that the default judgment be set aside and that the matter proceed to a hearing to determine the substantive issues. The court also ordered that the bank pay Zhang's costs of the application to set aside the default judgment. The bank was directed to serve a fresh statement of claim on Zhang and to provide an explanation for the delay in serving the original statement of claim. The case was to be listed for a further hearing to determine the merits of the bank's claim for possession.