Rahman v Dubs and Ors (No.2)

In *Rahman v Dubs and Ors (No.2)*, the applicant, Mr. Rahman, sought to set aside a default judgment entered against him in favour of the respondents, Dubs and Ors. The dispute arose from an alleged breach of contract, with the respondents having obtained default judgment after the applicant failed to file a defence within the prescribed time. The matter came before Judge Baird in the District Court of New South Wales.

The primary legal issue before the Court was whether the default judgment should be set aside. This required the Court to consider the principles governing applications to set aside default judgments, specifically the applicant's obligation to demonstrate a meritorious defence and the Court's discretion to grant such relief. The Court also had to assess whether the applicant had provided a sufficient explanation for his failure to file the defence in a timely manner.

Judge Baird applied the well-established principles for setting aside default judgments, which require a two-pronged approach. Firstly, the applicant must show a defence on the merits, even if only in outline. Secondly, the applicant must provide a reasonable explanation for the delay in filing the defence. In this instance, the Court found that the applicant had failed to satisfy either limb of this test. His explanation for the delay was deemed insufficient, and the material before the Court did not disclose a defence with a real prospect of success. Consequently, the Court exercised its discretion against setting aside the default judgment.