Commonwealth Consolidated Regulations

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FEDERAL COURT RULES 2011 - RULE 7.35

Order against judgment debtor or prospective judgment debtor or third party

             (1)  This rule applies if:

                     (a)  judgment has been given in favour of an applicant by:

                              (i)  the Court; or

                             (ii)  for a judgment to which subrule (2) applies--another court; or

                     (b)  an applicant has a good arguable case on an accrued or prospective cause of action that is justiciable in:

                              (i)  the Court; or

                             (ii)  for a cause of action to which subrule (3) applies--another court.

             (2)  This subrule applies to a judgment if there is a sufficient prospect that the judgment will be registered in or enforced by the Court.

             (3)  This subrule applies to a cause of action if:

                     (a)  there is a sufficient prospect that the other court will give judgment in favour of the applicant; and

                     (b)  there is a sufficient prospect that the judgment will be registered in or enforced by the Court.

             (4)  The Court may make a freezing order or an ancillary order or both against a judgment debtor or prospective judgment debtor if the Court is satisfied, having regard to all the circumstances, that there is a danger that a judgment or prospective judgment will be wholly or partly unsatisfied because any of the following might occur:

                     (a)  the judgment debtor, prospective judgment debtor or another person absconds;

                     (b)  the assets of the judgment debtor, prospective judgment debtor or another person are:

                              (i)  removed from Australia or from a place inside or outside Australia; or

                             (ii)  disposed of, dealt with or diminished in value.

             (5)  The Court may make a freezing order or an ancillary order or both against a person other than a judgment debtor or prospective judgment debtor (a third party ) if the Court is satisfied, having regard to all the circumstances, that:

                     (a)  there is a danger that a judgment or prospective judgment will be wholly or partly unsatisfied because:

                              (i)  the third party holds or is using, or has exercised or is exercising, a power of disposition over assets (including claims and expectancies) of the judgment debtor or prospective judgment debtor; or

                             (ii)  the third party is in possession of, or in a position of control or influence concerning, assets (including claims and expectancies) of the judgment debtor or prospective judgment debtor; or

                     (b)  a process in the Court is or may ultimately be available to the applicant as a result of a judgment or prospective judgment, under which process the third party may be obliged to disgorge assets or contribute toward satisfying the judgment or prospective judgment.

             (6)  Nothing in this rule affects the power of the Court to make a freezing order or ancillary order if the Court considers it is in the interests of justice to do so.



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