It is the standard legal procedure, at least is in NSW.
If default judgment is entered, without notice to the defendant, it is entirely regular for the default judgment to be set aside upon application of the defendant, who is now aware of the proceedings.
The proceedings are now resumed, and Buddy now have opportunity to put on a Defence and evidence, before the matter proceeds probably to a mediation before then a hearing.
BUD Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held