Document ID: chunk:federal_register_of_legislation:C2025C00185:section:415f
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 415F
Character Range: 1425894–1428251

415F  Order for rights to be enforceable only with leave of the Court

Orders
 (1) The Court may order that one or more rights under a contract, agreement or arrangement are enforceable against a body only:
 (a) with the leave of the Court; and
 (b) in accordance with such terms (if any) as the Court imposes.
Example: The order could be sought for a right to terminate for convenience.
 (2) The Court may make the order (the stay order) if:
 (a) the body is the subject of any of the following:
 (i) an announcement referred to in paragraph 415D(1)(a);
 (ii) an application under section 411 (the section 411 application);
 (iii) a compromise or arrangement approved under this Part as a result of a section 411 application; and
 (b) the Court is satisfied that:
 (i) the rights are being exercised; or
 (ii) the rights are likely to be exercised; or
 (iii) there is a threat to exercise the rights;
  because of one or more reasons referred to in paragraphs 415D(1)(a) to (f); and
 (c) an application for the stay order is:
 (i) if the body has made an announcement referred to in paragraph 415D(1)(a), but not yet a section 411 application—made by the body; or
 (ii) if the body has made a section 411 application, but a resulting compromise or arrangement is yet to be approved under this Part—included in the section 411 application; or
 (iii) if a compromise or arrangement has been approved under this Part as a result of the section 411 application—made by the person appointed to administer the compromise or arrangement; and
 (d) in a case where the body has made a section 411 application—the section 411 application states it is being made for the purpose of the body avoiding being wound up in insolvency.
 (3) A stay order must specify the period for which it applies. In working out the period, the Court must have regard to:
 (a) subsections 415D(2), (3) and (4); and
 (b) the interests of justice.
 (4) Subsection (1) does not apply to a right referred to in subsection 415D(6) or (8).

Interim orders
 (5) Before deciding an application for a stay order, the Court may grant an interim order for one or more rights under a contract, agreement or arrangement not to be enforced against a body.
 (6) The Court must not require an applicant for a stay order to give an undertaking as to damages as a condition of granting an interim order.