Many believe the court ruling will give Corbyn an advantage, as the bulk of new members are understood to be supporters of the Labour leader.
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The five members’ solicitor Kate Harrison told the press the court’s decision, including the rule to let minors vote in the election, is a triumph for democracy.
“For the party to refuse to allow the claimants to vote in the current leadership election, because they have not been members since 12 January 2016, would be unlawful as in breach of contract”, the judge said, according to the Press Association.
Mr Smith’s call for the timetable to be extended would mean a new leader would not be in place before the conference, and the tentpole leader’s speech would be given by incumbent leader Jeremy Corbyn. While Smith has the backing of a majority of the party’s lawmakers, Corbyn retains strong support among grassroots members.
A Labour spokesman said: “It is right that the Labour Party seeks to defend vigorously decisions of the National Executive Committee in this matter, and we will now study this judgment carefully”.
“We are appalled by the possibility of an unnecessary and costly appeal”.
“If it is taken forwards, the party will be using members’ money to try to stop members from voting”.
But the Labour leader later said that the party must “abide by” the result of the June 23 referendum.
Bookies slashed odds on Mr Corbyn winning from 1/10 to 1/16 after the ruling.
“Look, nothing is inevitable”, he said in an interview with the Huffington Post.
But Mr Smith insisted “of course it’s possible” he could win the contest.
He added: “It has happened: the Remain campaign didn’t get the majority, the Leave campaign did so we’ve got to work our way round that”.
“Labour wants to be a mass movement”.
Mr Smith will say the Bank of England’s decisions to cut interest rates to a record low and expand quantitative easing show the economy is “on the cliff edge of another recession, with ordinary people, again, set to pay the price”.
“We are a democratic socialist party, you can not have one without the other”.
Dave Ward, general secretary of the Communication Workers Union, said: “This is a victory for democracy”.
The Labour Party’s NEC has now made a decision to take the case to the Court of Appeal, where a hearing could take place later this week.
Gurinder Joshan, of Sikhs4Owen, said: “We are pleased that Mr Smith has recognised this is an issue and that given the significant role Sikhs play in society something needs to be done about it and the House of Lords would be good start”.
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“It’s time for all of us in the Labour Party to come together and fight the Tories”.
