TQM Design & Construct Pty Ltd v East End Stage 2 Pty Ltd [2026] NSWSC 1032
Catchwords: BUILDING AND CONSTRUCTION — adjudication — Building and Construction Industry Security of Payment Act 1999 (NSW), ss 25, 32 — where plaintiff seeks to enforce a judgment entered after an adjudication — where defendant seeks orders for payment by monthly instalments — whether evidence established a just basis for making such an order — where defendant relies on case sought to be established in other proceedings in which it challenges the result of the adjudication CIVIL PROCEDURE — subpoena and notice to produce — motion — where defendant seeks production of financial records by subpoena and notice to produce — where relevance disputed — relevance not established
Supreme Court
New South Wales
Medium Neutral Citation:
TQM Design & Construct Pty Ltd v East End Stage 2 Pty Ltd [2026] NSWSC 1032
Hearing dates:
24 August 2026
Date of orders:
28 August 2026
Decision date:
28 August 2026
Jurisdiction:
Common Law
Before:
Schmidt AJ
Decision:
1. I order that East End’s motions
be dismissed
and that production of the disputed documents not
be required.
2. Unless the
parties
approach within 14 days with short written submissions ,
East End Stage 2 Pty Ltd is to pay TQM
Design & Construct Pty Ltd’s
costs,
as agreed or assessed.
Catchwords:
BUILDING AND CONSTRUCTION — adjudication —
Building and Construction Industry Security of Payment Act 1999
(NSW), ss 25, 32
— where plaintiff seeks to enforce a judgment
entered after
an adjudication — where defendant seeks orders for payment
by
monthly instalments — whether evidence established
a
just basis for making such an order — where defendant relies on case sought to be established in other proceedings in which it challenges the result of the
adjudication
CIVIL PROCEDURE — subpoena
and notice to produce
—
motion —
where defendant seeks production of financial records
by subpoena and notice to produce — where relevance disputed — relevance not
established
Legislation Cited:
Building and Construction Industry Security of Payment Act
1999
(NSW) ,
P t 3,
ss
3, 8,
25, 32
Civil Procedure Act
2005
(NSW), ss 56, 107
Home Building Act 1989
(NSW), s 92
Strata Schemes Management Act
2015
(NSW), s 207
Uniform Civil Procedure Rules 2005
(NSW), rr 37.2, 42.1
Cases Cited:
A-Civil Aust Pty Ltd v Ceerose Pty Ltd
[2023] NSWCA 144
Alliance Living Pty Ltd v Arch-System Fabrication Pty Ltd
[2026] NSWCA 157
Chint Australisa Pty Limited v Socmoluce Pty Ltd
[2008] NSWSC 1054
Davidson v Greedy
[2012] VSC 202
East End Stage 2 Pty Ltd v TQM Design & Construct Pty Ltd & Ors
[2026] NSWSC 299
Hellier Capital
Pty Ltd v Albarran
[2009] NSWSC 403
In the matter of Australian Institute of Fitness
(VIC & TAS)
[2016] NSWSC 1143
Probuild
Constructions
(Aust) Pty Ltd v Shade Systems Pty Ltd
(2018) 264 CLR 1; [2018] HCA 4
Secretary of the Department of Planning, Industry and Environment v Blacktown City Council
(2021) 118 NSWLR 336; [2021] NSWCA 145
SRG Civil Pty Ltd v Brolton Group Pty Ltd
[2018] NSWSC 618
Winau Aust Pty Ltd v LCC Property Development Pty Ltd
[2022] NSWSC 1258
Category:
Procedural rulings
Parties:
TQM Design & Construct Pty Ltd (Plaintiff)
East End Stage 2 Pty Ltd (Defendant)
Representation:
Counsel:
A Vincent (Plaintiff)
J Jaffray & A Bell (Defendant)
Solicitors:
Salim Rutherford Lawyers (Plaintiff)
McCullough Robertson (Defendant)
File Number(s):
2026/318762
Publication restriction:
No
JUDGMENT
On 3 August 2026 judgment
was entered
in favour of TQM for $6,376,275.23 . It
having built
certain terraces
owned by East End
under an October 2020 construction contract and
later
having
obtained
an adjudication determination under the
Building and Construction Industry Security of Payment Act
1999
(NSW) , the SOP Act ,
in respect of what it claimed it was still owed under the contract .
There is no issue that
TQM
is entitled
to enforce
that judgment , but that right has
been stayed
while East End ’ s application for an order for payment by instalments
is resolved .
Its earlier instalment application having
been refused
by the Registrar and it seeing to have that decision set aside and an instalment order made.
To advance its case it issued a notice to produce and a subpoena by which it sought the production of various financial records which it expected would support the case it advanced. Their production
was resisted
by TQM
on the basis of
relevance.
East End
had earlier
brought proceedings in the Technology
and Construction
List seeking an injunction to restrain the filing of the enforcement certificate as a judgment under s
25 of the
SOP
Act , as well as
its enforcement.
TQM did not oppose the injunction in those terms,
provided that
it was conditional on the
a djudicated
a mount
being paid
into Court ,
t hat
being the Court ’ s usual practice . Instead ,
East End proffered a mortgage over its real property assets and a guarantee from a parent entity , which
was not agreed .
East End ’ s
proposal
was
rejected
by Nixon J :
East End Stage 2 Pty Ltd v TQM Design & Construct Pty Ltd & Ors
[2026] NSWSC 299 .
His Honour
concluding that
East End ha d
not
established that it
could not
“ reasonably pay ”
the
a djudicated
a mount into Court : at [80] .
The orders made
restrained TQM ’ s enforcement,
on East End
giving the Court the usual undertaking as to damages and do ing
one of the following:
“ (i)
deposit in the Court’s bank account the sum of $6,168,174.34; or
(ii)
deliver to the Court an unconditional bank guarantee in the sum of $6,168,174.34 issued by the Commonwealth Bank of Australia, Australia and New Zealand Banking Group, Westpac Banking Corporation or National Australia Bank or such other approved deposit taking institution based in Australia as may be agreed to by the First Defendant naming the First Defendant as the favouree with no expiry date”
East End did not
do so , with the result that
there was no issue that
TQM
was
entitled
to
pursue
the
enforcement
of the certificate ,
as it
did , by obtaining judgment .
East End
then
brought
further
proceedings
in the Technology
L ist
to challenge the enforcement certificate
under s 32 of the
SOP
Act . There is no question that in those proceedings, it
is entitled
to pursue re stitutionary recovery
of the kind referred to in
A-Civil Aust Pty Ltd v Ceerose Pty Ltd
[2023] NSWCA 144 .
The
second proceedings
are in the process of being prepared for hearing. Amongst what is there in issue is whether TQM has already
been paid
$6,376,275.23 the subject of the judgment it seeks to enforce .
This judgment deals with
East End ’ s
6
and 11
August
2026
motions ,
by which
it
seeks orders for payment
of what i t
owe s
under the
judgment
by monthly instalments of $354,237.51 , which would result in full payment over
some
18 months.
During which it expects that
the second Technology List proceedings, where
the dispute
about the
payment of the debt the subject of the judgment TQM seeks to enforce
will
be resolved , will
be heard .
It is in that context that the
production
of the disputed documents
was resisted
b y
TQM as being irrelevant to what is in issue in relation to
East End ’ s
instalment application . W hich
on its approach
cannot turn on the claim
East End
pursues
in the second Technology List proceedings .
This
is not accepted
by East End, which contends that contemporaneous records
in evidence
support its case that it has already paid the disputed sum . A nd
that
the financial records
are relevant to the exercise of the Court ’ s
discretion
to make the instalment order
it seeks , given that they will support the case it advances in the second Technology List proceedings .
East End ’ s
motions
are
supported
by
affidavit s
sworn
by Mr Hawkins ,
G eneral
Counsel of the Iris
Group
of which
it
is a member ,
and
Mr Nielsen , East End ’ s
solicitor .
TQM re l ied on
an
affidavit
s wo rn by Ms Saad ,
its
solicitor .
They
were not required
for cross - examination .
Conclusion
Given the purpose of the SOP Act
and the applicable principles
which I will explain, I am satisfied that it must be concluded that East End did not meet the onus which fell upon it to make out the case it pressed in respect of either motion.
Its approach departing from the restitution
which
the SOP Act
contemplates if
it proves its contractual case in the second Technology
List
proceedings .
Until East End succeeds in having the judgment which binds it set aside, the Court cannot proceed on the basis that it will or even is likely to succeed
in those proceedings .
The correctness of its case
as to the claimed payment of the sum the judgment enforces ,
thus cannot be determined in these proceedings . D epending as that does not only on what the parties ’
contract
actually required , but how it and other contractual arrangements under which it claims TQM
was paid ,
were performed , which TQM disputes.
The result is that it must
be accepted
that
East End
has not established that the disputed documents are relevant to its
instalment
application. Nor that a just basis exists for the
instalment
order which it seeks, given the limited
evidence
it adduced
about its financial position .
Issues
The orders
East End seeks
were
all
opposed .
TQM
relying on
the Registrar ’ s earlier
refusal
of
East End ’ s instalment
application ,
on
similar e vidence .
The applicable principles
were
not in issue, but their application and whether East End is entitled to advance its case in the way i t
seeks to do,
relying on contemporaneous documents to
contend that it has already paid TQM the sum the subject of the certificate, is disputed.
In issue
thus
was :
w hether the production sought should
be required ; and
w hether the
instalment
application should
be granted .
In resolving what is in issue ,
account must
be taken
of the
legislative purpose of
the SOP Act to
giv e
cashflow to builders and subcontractors in advance of a final hearing in a court . T he policy of the Act
being
to place the risk of insolvency on the developer/principal contractor :
A-Civil Aust Pty Ltd
at [20]
and [51] , citing
Probuild
Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd
(2018) 264 CLR 1; [2018] HCA 4
at
[27] .
In
A-Civil
,
it
having been
observed
t hat in contractual proceedings contemplated by s 32 of the
SOP
Act, if it was concluded that a payment made
under
the Act should, on the correct construction of the contract, not have been made,
then
“ [i] f necessary, a restitutionary order can be sought.
Under the legislative scheme, t he risk that the party placed at an advantage by an underpayment or overpayment may later become incapable of meeting such an order is a risk that is assigned to the other party. ” : at [19]-[20], citing
Probuild
at [51].
The p roduction East End pursued
can not justly be
required
The Court ’ s discretions
hav e
to
be exercised
in light of
statutory scheme, as well as
the overriding purpose specified in s 56 of the
Civil Procedure Act
2005
(NSW),
the CP Act. Namely,
the just,
quick,
and cheap resolution of the
real issues
in the se
proceedings.
I am not persuaded that the production of the documents by TQM and the related third party
—
by and to whom various relevant payments were made,
on
which East End
relies
in the second Technology
List
proceedings, as was fully explained in
oral
submissions
—
can justly be required in these proceedings.
Even though there is no issue that the
documents
are relevant in those proceedings
and the applicable principles are those discussed in
Secretary of the Department of Planning, Industry and Environment v Blacktown City Council
(2021) 118 NSWLR 336;
[2021] NSWCA 145
and the authorities
there referred to.
That is because
it
must
be
established
that the documents are
material to what
has to
be resolved
in these proceedings ,
in respect of the instalment application.
Given what the documents concern,
I
am not persuaded
that the y
are r elevant to what
has to
be determined
in respect of that
application .
Unlike the second Technology
L ist proceedings,
East End
here
not
challeng ing
either
the
adjudication determination ,
or the judgment by which TQM seeks to enforce it , as it
is entitled
to do
in accordance with
the SOP Act .
East End ’ s
only application
is
for an order for payment of the judgment sum by
instalment under s
107 of the
CP Act . It expects that
the production of
the disputed
financial records
will
help it to establish the case it advances in the second Technology
Li st proceeding s ,
which
are
currently
being prepared for hearing. Evidence on which East End relies
now
being due to
be served .
Rule 37.2
of the Uniform Civil Procedure Rules
2005 (NSW)
entitles a
judgment debtor
like
East End
to
apply to the
C ourt for an
instalment
order ,
the application
having to
be
supported
by
an affidavit
“ as to the judgment debtor ’ s financial circumstances ” .
The evidence
East End
led
sheds but limited light on those circumstances,
as it accepted. Wh ile shedding a great deal of light on the case which
it
pursues in the second proceedings,
which it contended was relevant to its instalment
application .
I
have not been able to accept that submission.
The Rules do not
specify
what considerations must be
taken into account
on an
instalment
application, with the result that the Court ’ s discretion is a wide one.
In
SRG Civil Pty Ltd v Brolton Group Pty Ltd
[2018] NSWSC 618 ,
N
A dams J explained the settled principles a t
[ 64]-[ 69 ]. They include:
p rima facie a party having succeeded in obtaining substantial success
is obviously entitled
to the fruits of its success :
Chint Australisa Pty Limited v Socmoluce Pty Ltd
[2008] NSWSC 1054 at [15]
and
Hellier Capital
Pty Ltd v Albarran
[2009] NSWSC 403
at [19 ] ;
t he onus of establishing that
an
instalment order should
be made
thus
falls on East End, the applicant :
In the
m
atter of Australian Institute of Fitness (
VIC
& T
AS
)
[2016] NSWSC 1143 at [25 ] ;
r elevant criteria identified in
Hellier Capital
at [7]
being:
the means the judgment debtor
has to
satisfy the
judgment;
whether the instalments sought will see the judgment debt paid within a reasonable
time;
the necessary living expenses of the judgment debtor and
dependants;
other liabilities of the judgment
debtor;
whether, having regard to the availability of other enforcement means, making the order would be consistent with the public interest in enforcing money orders efficiently and
expeditiously;
whether the order will impose unreasonable hardship on the judgment creditor.
a n instalment order ought not to be made if the judgment debtor ’ s means are sufficient to allow payment of the judgment immediately and in full, or conversely, if the means are so deficient that the instalments could not be met and the making of the order would be
futile;
p rovisions of this kind exist ing
to enable judgment creditors to obtain the fruits of their judgments.
The ir
purpose not
being
to curtail the rights available at law to obtain satisfaction of a judgment but, rather, to add a method that may be more suited to the particular circumstances than levying of execution and other processes by which the whole sum is sought to be recouped at once :
Davidson v Greedy
[2012] VSC
202;
w hile an instalment order obviously mitigates the severity of the situation in which the judgment debtor
is placed , that is not the real issue.
The principal concern
being
whether an instalment arrangement will be more conducive to the judgment creditor ’ s achieving payment in full in a reasonable
time ;
t he issue is
thus
whether indulgence to the judgment debtor will enhance the prospects of full recovery by the judgment
creditor ;
a
relevant factor
being
the ability of the judgment debtor to pay, not only from its own internal resources but also from external sources, particularly related companies on which it might reasonably be expected to draw and which might reasonably be expected to provide financial assistance to it :
Australian Institute of Fitness
at [29];
and
“ There is a real public interest in enabling parties who have litigated their disputes to enforce the victory that they have achieved.
That public interest arises, at least in part, because the system of adjudication through courts depends firstly on acceptance of the outcome (if necessary, after exhausting all available avenues of appeal) and, secondly, the ability to enforce the outcome.
If the process of adjudication is to survive, so that people do not resort to self-help, the courts should be slow to interfere in the normal processes of enforcement ” :
Hellier Capital
at [19].
In this case ,
it may thus not
be overlooked
that East End has made the forensic decision not to
pursue
the stay of the
adjudication
certificate which
Nixon J ordered . Nor has it sought a
stay of the judgment which TQM obtained
as a result of
that
decision. Instead ,
it
has
exercis ed
its rights under s
32 of the
SOP
Act
in the second Technology
List
proceedings ,
which it commenced in
May 2026,
to
pursue
its contractual claims .
It thus remains bound by the judgment which TQM
is entitled
to enforce, as it accepts.
Th e
statutory regime
which resulted in that judgment
being entered
was e x pl a ined
in
Probuild
at [ 36 ]-[ 47 ]:
t he SOP Act
having been e nacted to reform payment behaviour in the construction industry
by seeking to ensure that a person who undertakes to carry out construction work under a construction contract is entitled to receive, and is able to recover, progress payments promptly in relation to the carrying out of that
wo rk;
i n particular ,
to
“ stamp out the practice of developers and contractors delaying payment to subcontractors and suppliers ” ;
w hich it achieves by setting up a scheme, including a
“ unique form of adjudication of disputes over the amount due for payment ”
which is
“ coherent, expeditious and self-contained ” . The intended result being that
“ each party knows precisely where they stand at any point of time ” ;
t he
Act
not
being
concerned with finally and conclusively determining the entitlements of parties to a construction contract.
Section 8
confer ring
an entitlement to a progress payment, which may be the final payment, a single or one-off payment or what
is described
as a
“ milestone payment ” ;
P art
3
creat es
a distinct procedure for enforcing that statutory entitlement, which includes the making of a payment claim, the provision of a payment schedule in response and the determination of a payment claim by an adjudicator ,
at the option of the
claimant ;
t he statutory entitlement to a progress payment and the procedure for recovery of a progress payment being separate from, and in addition to, a contractor ’ s entitlement under the construction contract in respect of payment for completed
work;
t he statutory entitlement and the means available for its enforcement stand ing
apart from the parties ’
rights under that contract ,
despite any contractual provision to the
contrary ;
t he Act also preserving the parties ’
contractual entitlements: s
32;
t here
are
brutally fast time limits imposed on the claimant, the
respondent,
and the adjudicator to ensure the prompt resolution of payment disputes,
which
are not conducive to lengthy consideration by an adjudicator of detailed submissions on all questions of
law;
a n adjudicator ’ s determination is not subject to judicial review for non-jurisdictional error of law
and t here is no right of appeal from the determination of an
adjudicator ;
i f the respondent commences proceedings to have the judgment set aside, the respondent
is not entitled
to bring any cross-claim against the claimant, to raise any defence in relation to matters arising under the
construction contract or to challenge the adjudicator ’ s determination .
In addition, the respondent must pay into court as security the unpaid portion of the
adjudicated
amount pending the final determination of those proceedings : s
25(4)(b);
and
a
determination does not give rise to any issue estoppel for the purposes of civil proceedings arising under a construction contract :
ss 3(4) and 32 .
The
ability of a party to enforce contractual rights, including where an adjudicator has erred in determining the amount of a progress payment, is undiminished.
In
Alliance Living Pty Ltd v Arch-System Fabrication Pty Ltd
[2026] NSWCA 157 ,
it was
thus
held that s 32(2)
of the SOP Act
makes it clear that
the merits of any claim under a construction contract are unaffected by an adjudication determination ,
or the obtaining of a judgment under Pt
3 of
that
Act: at [36] .
T he purpose of s
32
not
being
to regulate the actual conduct of resulting civil proceedings.
But t he significance of a judgment obtained in accordance with the SOP Act may not
be undermined
in such proceedings , that being the mechanism by which that Act
ultimately achieves
its purpose: at [36].
That, it seems to me is
an impediment to
the case East End advanced
being accepted .
The creation of a judgment debt by the registration of an adjudication certificate does not affect civil proceedings
that arise
under the parties ’
contract.
But
non-payment of the judgment debt may have an impact in later civil proceedings: at [37]. In
Alliance
,
because it provided
the
basis on which security for costs
was ordered
in the civil proceedings , the judgment debt
also
not having
been paid .
The whole point of s 25
being
to create a legal obligation to make the payment
which is equivalent to a judgment debt obtained
as a consequence of
a hearing before a court : at [39] .
That
it is a judgment which enforces an adjudication determination under the SOP Act, in respect of which
the
instalment application is made ,
must have the result that the case East End pursues in relation to the parties ’
contract
and the payments TQM has received , is
not relevant to the resolution of the disputed
instalment
application . Given TQM ’ s right to enforce the
judgment by which the parties remain bound , until set aside by order of the Court.
The
result
is further
that the case
and the evidence by
which East End pursues
its contractual claims i n the second Technology
List
proceedings
in accordance with s
32 of the SOP Act ,
are
not relevant to
the resolution of
what is in issue
about the instalment application .
Unless and until
th e
judgment
by which the parties are bound
is set aside as the result of what East
End
pursues
in the second Tech n ology
List
proceedings, it remains binding and enforceable.
The parties ’
prospects in the other proceedings can
thus
have no impact on the enforcement of the judgment in the meantime.
En tertaining the case which East End
seeks
to
establish in those other
proceedings
also
gives
rise to the
undesirable
possibility of different conclusions being arrived at about the same issue in the two proceedings.
It also leaves open the result
that despite
orders
being made
in these proceedings on
the
basis
on
which East End
intends to
pursue
the second Technology List proceedings, it
m a y never establish
its claim in those proceedings .
TQM
thus
met East End ’ s case by contending that the evidence it sought to rely on to advance what it claims in
the second proceedings , by disputing its relevance, rather than leading
evidence
to meet it.
In my view ,
that
was the appro pri ate course.
East
End no t
seeking
in these proceedings
to have the judgment
TQM
is entitled
to enforce
set
aside, but
only
seeking an order for
its
payment
by
instalment .
The onus falling on it to establish a just basis for making
th e
proposed
order , premised as it undoubtedly
i s on
its
acceptance that the judgment binds it.
Despite this East End
contended that
its onus
was
satisfied
by the unusual
circumstances
which arose to
be considered
on the contemporaneous documents on which it
relied . E ach case having to
be decided
on
its own circumstances and no other authorities having had to consider circumstances
such
as those which here arise.
It
essentially claiming
that the evidence it advanced established that
TQM had already received what the
judgment
required it
be paid
again.
East End , in reality, having
no contractual debt at all to TQM, as it was seeking to establish in the second Technology List proceedings , despite what TQM had there pleaded .
It was Mr Nielsen ’ s
affidavit
which explained
that the judgment debt was comprised of $5,512,105.56 principal, plus GST and interest,
that
reflecting the March 2026 adjudication . W hen the adjudicator concluded that what East End had
advanced
in those proceedings to resist TQM ’ s claim was not within
jurisdiction , given the
separate loan agreement
with another company not party to the proceedings,
under which the payments relied on
were made . It is also not a party to the proceedings East End pursues in this Court .
Mr Nielsen ’ s
affidavit
also explained payments which had
been made
between
September 2023 and August 2024 into a nominated
account ,
on
behalf o f
East End . They
totalling
only
some
$4,629,628
and
seemingly also
not having been relevant to what
the adjudicator had to
consider
and thus not before
the adjudicator.
That the se
documents established
what East End claimed
was not accepted
by TQM . W hich
also
resisted the production, in these proceedings , of
the financial records
which East End expected would
establish
that
it
had received what it
was owed
under their contract .
Given what the se proceedings
are concerned with ,
I am not satisfied that East End
is entitled ,
as it seeks to do, to
establish the case it pursues in the second Technology
List
proceedings . B ound as it
remains
by the
j udgment which TQM
is undoubtedly entitled
to enforce, as
East End ’ s
own application accepts.
The
relief it purs ues
only
in the second Technology
List
proceedings, which
are
defended , being:
“1
A declaration that the total amount paid to the Defendant for works performed under the Contract is at least $51,496,374.54 (excluding GST).
2 Damages.
3 Restitution for amounts paid to date by East End to TQM.
4 Costs.
5 Such further or other orders as appropriate.
6 A final injunction restraining the Defendant, by itself, its servants, and agents, from taking any step to enforce the Adjudication Determination or any judgment entered in reliance upon it.”
It follows that the orders sought in relation to the disputed documents must
be refused .
What the evidence does and does not establish about East End’s means
The evidence establishes that East End is far from impecunious. There is no suggestion that paying the judgment debt would put it into a position where it would be trading insolvently . O r that it would no
longer
have the support of the other members of the Iris group of companies
of which it is a member . Although
I note that
who they are ,
was not disclosed .
In Mr
Hawkins ’
6 August
affidavit
he deposed to East End having assets of $50,069,401 and total liabilities of $29,237,567. Comprising $19,715,169 real estate which it
was
statutorily
barred
from selling because of TQM ’ s failure to obtain insurance required by s
92 of the
Home
Building
Act
1989
(NSW). It is pursuing damages in the second Technology
L ist proceedings for this
claimed failure .
It was his evidence that the proposed monthly
instalments
reflected what East End could realistically recover from
its
debtors, it
having
over $26
million in loans to
unidentified
associates. The basis of
t his
opinion
was
also
not disclosed . H e also said
that
East End
had only $100
held in bank and other accounts.
In Mr
Hawkins ’
6
August affid av it ,
he
also
deposed to East End having real estate assets with a value of $19,715,16 9;
as well as
a strata bond schem e
with a value of $2,500,997 ,
which could not be accessed , that being a
statutory
requirement under s
207 of the
Strata
Schemes
Management Act
2015
(NSW); as well as an unidentified amount of receivables owed by debtors.
In
Mr Nielsen ’ s
affidavit ,
he deposed that Mr Hawkins had instructed him that the net
position
of receivables and
payables
was by 17 August
only
$9,579,572 ,
and that their payment was not possible from available sources of
cash
within Iris Cap i tal.
But this
affidavit
shed no light on what had resulted in this considerable change, nor the basis of M r Hawkins ’
then
opinion.
With the result, TQM contended, that the evidence on which it relied provided no proper basis for the instalment order which it sought.
East End has not met its
onus
Th at, I am satisfied,
must
be accepted . The
evidence not establish ing
a just basis for the orders East End sought , it
not having
reliably
establish ed
East End ’ s fin an cial position , or even its capacity to make the proposed payments, despite its assets. Which also do not support the making of the order sought .
East End contended that the
instalment
order would not adversely affect TQM, given the funds
o f at least $6
million it had already received,
which
t he adjudicator
had
not
taken
into account .
East End ’ s obligation having
been met
by a third party:
Winau Aust Pty Ltd v LCC Property Development Pty Ltd
[2022] NSWSC 1258 .
There
it
having been
held at [30] that
“ [i] t is beyond doubt that an obligation to advance money under a loan agreement can be vicariously performed and, absent some contrary provision in the loan agreement, vicarious performance by the lender will be authorised. ”
That weighing in favour
o f the
instalment
order
being made
and displacing the usual position that a successful
party
in commercial litigation
is entitled
to enforce
judgment in the usual way.
That also no t
cutting across the SOP Act scheme, East End not seeking to have the
adjudicator ’ s
determination set aside; the
Act ’ s
policy of cashflow having already been achieved ;
the adjudicator not having had jurisdiction to resolve what was in issue about the payments East End claimed TQM had already received ;
and the parties ’
commercial
position
justifying the order sought. The instalments resulting in
satisfaction
of the judgment debt within 18
months
and the evidence establishing East End
could comp ly
with them .
The order thus
according
with the justice of the case.
There is no question that
on the evidence East End led,
i ts assets are more than sufficient to
permit
it
to
pay the judgment deb t, which does not support its application. It
claims it
still
does not have the means to
pay
that debt,
given the constraints Mr Hawkins explained . B ut the evidence it relies on does not sufficiently reveal its financial circumstances ,
for this to
be accepted .
Even
i f
it
were,
it
would necessarily follow
that
East End
has not
established
that it has the means to make the proposed monthly payments.
None of the evidence addressing
or establishing
this .
Mr Hawkin s ’
unsupported op i nion s, which did not address this question , not being a reliable basis for firm conclusions to
be reached
about
that
issue .
In the result, it must
be accepted
that East End did not satisfy the onus which fell upon it.
Costs
The usual order under the Rules is that costs follow the event : Uniform Civil Procedure Rules 2005 (NSW), r 42.1 . In this case ,
that
is an order in favour of TQM.
Unless the
parties ’
approach with short written submissions within 14 days, that will be the Court ’ s order.
Orders
Otherwise , for the
reasons
given ,
I order that East End ’ s motions
be dismissed
and that production of the disputed documents not
be required .
I finally note that given the evidence led and the cases advanced, it seems to me that the parties ought to be capable of resolving what is really in issue between them. The obligations imposed by s 56
o f the CP Act continuing to bind them in the second Technology List proceedings.
I will thus refer this judgment to Peden J, with the suggestion that consideration
be given
to referring the parties to those proceedings for mediation.
**********
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Decision last updated:
28 August 2026
Official source: https://www.caselaw.nsw.gov.au/decision/1a0460b2474396eef19e405a