Sipad Holding v Popovic, Nikola

Case [1995] FCA 895


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IN THE FEDERAL COURT OF AUSTRALIA                 )
NEW SOUTH WALES DISTRICT REGISTRY       )          No. NG3192 of 1995
GENERAL DIVISION  )

IN THE MATTER OF
SIDEX AUSTRALIA PTY LIMITED
(RECEIVER AND MANAGER APPOINTED)
(A.C.N. 000 828 606)

BETWEEN:SIPAD HOLDING d.d.p.o.

First Applicant

PERO VLADIC
  Second Applicant

AND:NIKOLA POPOVIC

First Respondent

DRAGAN KARAC

Second Respondent

MILAN JOVICIC

Third Respondent

JOSEPH JOHN GILLES

Fourth Respondent

AUSTRALIA FURNITURE PTY LIMITED

Fifth Respondent

SIDEX AUSTRALIA PTY LIMITED

(RECEIVER AND MANAGER APPOINTED)

Sixth Respondent

SIPAD EXPORT IMPORT d.d.p.o.

Seventh Respondent

CORAM:    Lehane J
PLACE:     Sydney
DATE:       10 October 1995

EXTEMPORE REASONS FOR JUDGMENT

LEHANE J:  The first, second and third respondents have sought an adjournment of this matter for what amounts to an indefinite period but which may perhaps, it has been suggested, be six to eight months.  The grounds upon which they put their application are in broad terms the suggested injustice that will arise for them if the matter proceeds to a hearing now. 

That injustice, it is said, arises from several factors.  One is that those respondents are now unrepresented and are in the difficult position of having, without the benefit of legal advice or assistance, to conduct on their own what must be conceded to be difficult and complex proceedings.

A second ground giving rise to the alleged injustice is said to be that the continuation of hostilities in the former Yugoslavia makes it impossible for those respondents to obtain either, I think, the information or the funds that they require in order to conduct the case properly.  The court begins I think, in a case like this, with a strong predisposition to grant an adjournment to a party who is suddenly left without legal representation to fight a difficult case on his own. 

In this case, however, Mr Douglas has argued strongly that there are grounds which ought to lead me to the conclusion that no adjournment should be granted and indeed I have referred to matters during the course of discussion this morning which might suggest that this is a case where it would not, in the interests of justice, be convenient or proper to grant an adjournment.

The grounds advanced by Mr Douglas are principally that a number of witnesses are available in Paris to give evidence by video conference this afternoon and tomorrow, that this fact and the difficulty entailed in arranging it have been known for some time to the respondents and that it would be unreasonable on that account to grant an adjournment at this late stage.  Secondly, Mr Douglas points out that this matter was expedited with the consent of the respondents. 

The hearing was set for 9 October with the consent of the first three respondents.  When the matter came before Beaumont J on 21 September, when discussions had apparently already commenced which were likely to lead to the termination of the retainer of the respondents' former solicitors, his Honour was not informed, neither for that matter were the other parties, that those discussions were in progress or that the termination of the retainer was likely.

Additionally, Mr Douglas has referred to matters going beyond the interests of the two parties to the litigation: matters such as the availability of time in the courts' lists. Certainly it is true, I believe, that it would be almost impossible to find a period of a week within what remains of this year and in any event that, I am told by Mr Popovic, would not suit the purposes of the respondents who need a considerably longer adjournment. 

By an interlocutory order of this Court a receiver of Sidex Australia Pty Ltd was appointed some months ago.  The receivership continues and apparently must continue until this matter can be resolved.  That also, I think, is a factor pointing towards an earlier rather than a later resolution of this case.

Finally, I think it should be said that the applicants have from the outset of this case made reasonably clear, by affidavit evidence, the basis on which they claim that the company apparently known in English as Sipad Holding is the principal holder of shares in Sidex Australia Pty Limited.

The contentions and evidence put forward by the applicants on that topic have not, apparently up to now, been challenged by the respondents on any serious basis.  For all those reasons, despite the difficulties that this must cause for the unrepresented respondents and the sympathy one naturally feels for them in that difficulty, I believe the adjournment must be refused and I refuse it.

I certify that this and the preceding 3 pages are a true copy of the Reasons for Judgment of the Honourable Justice Lehane.

Associate:

Dated:  9 November 1995

Heard:  10 October 1995

Place:                   Sydney

Decision:              10 October 1995

Appearances:                  Mr F M Douglas QC and Mr J E Sexton of counsel instructed by Mallesons Stephen Jaques appeared for the applicant.

The first and third respondents appeared in person.

Mr V R Gray of counsel instructed by R F Giles Payne & Co appeared for the fourth respondent.

Mr S G Finch of counsel instructed by Phillips Fox appeared for the sixth respondent.

Details
AGLC
Sipad Holding v Popovic, Nikola [1995] FCA 895
Case
[1995] FCA 895
Decision Date

CaseChat Overview and Summary

In the Federal Court of Australia, Sipad Holding d.d.p.o. and Pero Vladic sought an adjournment of their proceedings against Nikola Popovic, Dragan Karac, Milan Jokic, Joseph John Gilles, Australia Furniture Pty Limited, Sidex Australia Pty Limited (Receiver and Manager appointed), and Sipad Export Import d.d.p.o. The respondents argued that they were unrepresented and that the ongoing conflict in the former Yugoslavia prevented them from properly preparing their case. They contended that these factors would result in an injustice if the matter proceeded as scheduled. The court was tasked with determining whether the respondents' circumstances justified an adjournment, despite the inconvenience and potential delay to other parties, including the receiver of Sidex Australia Pty Limited.

The primary legal issue before the court was whether the respondents' lack of legal representation and the difficulties posed by the conflict in the former Yugoslavia constituted sufficient grounds to warrant an adjournment. The court also considered the availability of witnesses in Paris who could provide evidence via video conference, the fact that the respondents had not disclosed the impending termination of their legal representation, and the broader implications of the case on the court's scheduling and the receivership of Sidex Australia Pty Limited. Furthermore, the court assessed whether the respondents had adequately contested the applicants' claims regarding Sipad Holding's ownership of shares in Sidex Australia Pty Limited.

In his judgment, Justice Lehane noted the court's general inclination to grant an adjournment to an unrepresented party facing complex litigation. However, he ultimately decided against granting the adjournment due to the respondents' failure to disclose the impending termination of their legal representation, the availability of witnesses in Paris, and the broader implications of the case on the court's scheduling and the receivership of Sidex Australia Pty Limited. The court also found that the respondents' claims regarding Sipad Holding's ownership of shares in Sidex Australia Pty Limited had not been seriously contested. Therefore, Justice Lehane refused the application for an adjournment.

The court ordered that the matter proceed as scheduled, with the respondents proceeding unrepresented. The decision underscores the importance of transparency and timely disclosure in legal proceedings, as well as the court's consideration of broader factors such as the availability of witnesses and the impact on other parties when deciding whether to grant an adjournment.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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