Vaishi Enterprises Pty Ltd v GSM Food and Spices Pty Ltd

Vaishi Enterprises Pty Ltd (the applicant) sought to set aside a default judgment entered against it in favour of GSM Food and Spices Pty Ltd (the respondent). The dispute arose from an alleged breach of a commercial lease agreement. The application to set aside the default judgment was heard in the Supreme Court of Victoria.

The primary legal issue before the Court was whether the applicant had established a meritorious defence to the respondent's claim for damages under the lease. The Court was required to consider the principles governing applications to set aside default judgments, particularly the need to demonstrate a defence that is not merely a sham or vexatious, but has real prospects of success.

The Court reasoned that the applicant had failed to provide sufficient evidence to establish a meritorious defence. While the applicant raised arguments concerning alleged breaches by the respondent and a purported termination of the lease, these assertions were not supported by credible evidence. The Court applied the principle that a defendant seeking to set aside a default judgment must show a defence that is arguable and has some substance, rather than relying on vague or unsubstantiated claims. The applicant's failure to demonstrate such a defence meant that the Court was not satisfied that it was in the interests of justice to set aside the default judgment.

The Court therefore dismissed the application to set aside the default judgment.