X Pty Ltd and Carapello and Anor

X Pty Ltd applied to the Supreme Court of Victoria for an order to set aside a default judgment entered against it in favour of the respondents, Mr Carapello and Ms Carapello. The default judgment had been entered following X Pty Ltd's failure to file a defence within the time prescribed by the rules.

The primary legal issue before Aldridge J was whether X Pty Ltd had established sufficient grounds to justify setting aside the default judgment. This required the court to consider whether X Pty Ltd had a meritorious defence to the claim and whether it had provided a satisfactory explanation for its failure to file the defence within the stipulated time.

Aldridge J dismissed the application, finding that X Pty Ltd had failed to demonstrate either a meritorious defence or a sufficient explanation for its delay. The court noted that the material before it did not disclose any arguable defence to the respondents' claim. Furthermore, the explanation offered for the failure to file the defence was found to be inadequate, lacking the necessary detail and credibility to excuse the default. Consequently, the court concluded that it was not in the interests of justice to set aside the default judgment.