When exercising the discretion under s 78(2) of the VCAT Act to strike out proceedings or determine them for non-compliance with directions, the Tribunal must take into account the important consideration that a party should ordinarily be heard on the merits; that consideration is not extinguished merely because the party has failed to comply with directions. Orders under s 78(2) are a remedy of last resort, and the Tribunal must conduct a genuine balancing exercise weighing the prejudice to both parties. Self-executing orders should not be dismissed as an alternative merely because of uncertainty about compliance.
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