Rabah Enterprises Pty Ltd v LCM Operations Pty Ltd

In *Rabah Enterprises Pty Ltd v LCM Operations Pty Ltd*, the appellant, Rabah Enterprises Pty Ltd, sought a stay of certain orders made by Rees J, pending the determination of an appeal. The dispute concerned 18 lots owned by the appellant within a strata plan, which were subject to a mortgage to a bank. The appellant argued that attempts to sell these lots to satisfy the judgment debt would likely trigger a default under the mortgage, and that sales were unlikely to be completed before the appeal was heard.

The primary legal issue before Basten AJA was whether to grant a stay of execution of the orders made by Rees J, specifically the order for possession, the costs order, and the writ for the levy of property. The court was required to consider the strength of the appellant's grounds of appeal and the potential prejudice to the parties if a stay was or was not granted.

Basten AJA reasoned that the appeal was reasonably arguable and that the appeal was likely to be heard and determined within approximately four months. The court found that the appellant's attempts to sell the lots, which were necessary to avoid default on the mortgage, would likely be frustrated by the execution of the judgment. To balance the competing interests, the court granted a stay of the specified orders, subject to strict conditions designed to protect the value of the appellant's assets and ensure the efficacy of the appeal process. These conditions included prohibitions on selling or encumbering certain lots and valuables, a requirement to pay a significant sum into court, and an obligation to comply with directions for the expeditious hearing of the appeal.