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Update in relation to Civil Dispute Resolution Act 2011 (Cth)

22 Jul 2011

This article is written by way of update to our article dated 24 May 2011 on the Civil Dispute Resolution Act 2011 (‘the Act’). 

When does the Act commence

The Act is now set to commence by Proclamation on 1 August 2011.

Certain types of proceedings excluded from Act

At the time of writing our previous article, there were no regulations in place, so it was unclear whether parties commencing proceedings for either bankruptcy proceedings or wind up proceedings were required to comply with the obligations set out in the Act.

On 30 June 2011, the Civil Dispute Resolution Regulations 2011 (‘the Regulations’) were put in place.

Section 4 of the Regulations provides that the following proceedings are now excluded proceedings, as referred to in section 17 of the Act:

  1. proceedings for a sequestration order pursuant to 43 of the Bankruptcy Act 1966, if the act of bankruptcy relied on arose under paragraph 40(1)(g) of that Act;
  2. proceedings for an order pursuant to section 459A of the Corporations Act 2001 to wind up a company in insolvency, if the application for the order relies on a failure by the company to comply with a statutory demand; and
  3. proceedings for review of a decision of a Registrar of an eligible court.

These proceedings are in addition to the list of excluded proceedings set out in our previous article.

What this means for applicants

As of 1 August 2011, unless the proceedings you are commencing are defined as excluded proceedings by either the Act or the Regulations, you are required to take genuine steps to try and resolve the issues in dispute before filing your proceedings.

Hynes Legal's litigation team is well equipped in commencing proceedings in the Federal Court and the Federal Magistrates Courts, and are available to assist you with your new obligations as applicants come 1 August 2011.