VadeLab
AllowedSupreme Court of New South Wales·

Successful Set Aside of Statutory Demand in NSW Supreme Court

Case No. [2010] NSWSC 1302 · Justice Barrett

📌 In brief

In this case, the claimant successfully challenged a statutory demand issued by another company. The court ruled in favour of setting aside the demand because there was reasonable doubt about whether the claimed debt actually existed.

⚖️ Legal holding

A company can set aside a statutory demand if there is a plausible contention that the alleged debt does not exist.

Topics

corporationsstatutory demands

Provisions

Corporations Act 2001 (Cth) ss 459G, 459H(1)(a)

📖 What the law says

Corporations Act 2001 s.459G

A company can request the court to cancel a statutory demand if it meets certain conditions: it must file an affidavit supporting the request with the court, and provide copies of the application and the supporting affidavit to the person who issued the demand.

Plain-English explanation — does not replace advice from a legal practitioner.

📖 Technical summary

The claimant successfully set aside a statutory demand based on genuine dispute.

📚 Full judgment

The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.

📄 Read the full judgment⚖️ View on the official court website ↗

📊 How courts decide similar cases

Among 12 similar decisions in this collection:

A snapshot of this collection — not a prediction of your case's outcome.

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • A company can set aside a statutory demand if there is a plausible contention that the alleged debt does not exist.
  • A creditor may seek to wind up a debtor company even if the debtor has filed an appeal against the judgment forming the basis of the statutory demand.
  • An applicant may set aside a statutory demand if there is a genuine dispute over the existence of the debt or an off-setting claim exists.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The decision set aside a statutory demand based on a plausible contention that the alleged debt does not exist.

Who was involved?

A company (the claimant) challenged another company's (the respondent) statutory demand.

How did the court decide, and why?

The court decided in favour of the claimant because there was a plausible contention that the alleged debt does not exist.

Which laws or rules were applied?

The Corporations Act 2001 (a person) sections 459G and 459H(1)(a) were applied.

Was the decision for or against the person who brought the case?

The decision was in favour of the person who brought the case.

What does this mean for someone in a similar situation?

Someone facing a statutory demand can challenge it if there is reasonable doubt about the existence of the alleged debt.

What evidence or documents mattered?

The court considered evidence regarding the nature and existence of the alleged debt.

Can a decision like this be appealed?

Yes, decisions such as these can often be appealed to a higher court.

Is it worth getting a solicitor for a case like this?

It is highly recommended to seek legal advice from a qualified solicitor for cases involving statutory demands.

Official source: Supreme Court of New South Wales this page does not reproduce the decision; it links to the court's own publication. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Supreme Court of New South Wales and is reproduced from NSW Caselaw (© State of New South Wales) under its published republication policy. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.