Section 25(4) of the Building and Construction Industry Security of Payment Act 1999 (NSW) prohibits cross-claims and defences only in proceedings to set aside a judgment based on an adjudication determination; it does not apply to collateral proceedings such as applications for a stay of execution. Where a judgment creditor under the Act is subject to a deed of company arrangement, the court will balance the legislative policy of prompt payment against the risk of irreparable prejudice to the judgment debtor, having regard to the strength of the asserted cross-claim and any security offered by the judgment creditor. The court may require the judgment creditor to provide security as a condition of lifting a stay.
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