A former IT worker has been ordered by the Victorian Supreme Court to cover a portion of legal costs after an unsuccessful bid to sue the National Broadband Network (NBN) and Ernst & Young (EY).

Abhishek Mishra had alleged that NBN threatened to end his employment due to suspected whistleblowing activity, seeking damages for psychiatric injury. The claim was initially filed in February 2022. Global consulting firm EY was a co-defendant until it reached a settlement with Mishra the day before a hearing.

Mishra's legal team initially sought a settlement exceeding $8 million. This figure included a redundancy payout, relocation expenses, lost property investment opportunities, loss of future income, and compensation for harm to his well-being. He also sought payment for six years of tax liabilities.

Over four years, EY and NBN made five settlement attempts. In June 2022, they jointly offered $210,000, plus coverage for any Australian or Indian tax liabilities. Mishra's solicitors responded by demanding over $8 million.

In August 2023, Mishra filed a breakdown of losses and damages, including future healthcare costs and one year's salary as payment in lieu of reasonable notice. Around the same time, defense witnesses provided evidence suggesting Mishra's termination was unrelated to any whistleblowing concerns. NBN had initially sought a summary dismissal of Mishra's damages claim, arguing it had no real chance of success, but this ruling was overturned on appeal in May 2025, reviving Mishra's case.

A second settlement offer from EY and NBN in May 2024 proposed $150,000 and coverage for Indian tax penalties. The defendants warned of the high likelihood of Mishra's claims failing and highlighted perceived weaknesses. This offer expired without response. On June 2, Mishra's solicitors rejected the offer and proposed a counter-offer of $915,000, including a $510,000 mental health support package.

Following further negotiation attempts, EY and NBN increased their offer to $180,000, with an additional $6,000 for storage costs. Their solicitors advised this was a generous offer given that Mishra's personal injury claim had been dismissed and his claim for payment in lieu of notice was not supported by his contract.

By October, Mishra had lowered his settlement demand to $665,000, while EY and NBN countered with $240,000, describing it as a purely commercial offer. They maintained that Mishra's bid remained excessive and disproportionate to the merits of his claim.

A fourth offer of $300,000 lapsed in November 2024. On February 20, 2026, four years after the original claim, EY and NBN made their fifth and final offer of $400,000. They warned that Mishra's claim had no plausible basis and was likely to fail, citing extensive documentary evidence that contradicted whistleblowing concerns.

Nearly two weeks after the final offer lapsed, Mishra's solicitors sought $3 million. This offer also expired without a response. On March 16, 2026, the day before the trial was set to begin, Mishra reached a settlement with EY only.

During the four-day hearing, Justice Watson described Mishra's claim as an attempt to fit a square peg in a round hole and fundamentally mismatched to the evidence and statutory whistleblower provisions. The court also noted that Mishra's pleadings did not establish a legal or factual basis for NBN Co failing in its contractual obligations regarding relocation expenses and payment in lieu of reasonable notice.

While Justice Watson did not find Mishra's rejection of the second and third settlement offers unreasonable, he deemed it imprudent. However, he found NBN's fourth settlement offer to be a genuine attempt to compromise, and Mishra's rejection of it was deemed an unreasonable act that incurred extra costs. Mishra had argued he was unable to accept the fourth and fifth offers due to his solicitor's unwillingness to warrant his capacity to enter settlement, but Justice Watson did not accept this argument, stating Mishra had not demonstrated the offers were incapable of acceptance. Consequently, Mishra was ordered to pay NBN's costs from the point their fourth offer lapsed in November 2024.