Arris Investments Pty Ltd v Fahd & Anor [2010] NSWSC 309

Arris Investments Pty Ltd v Fahd & Anor [2010] NSWSC 309

The statutory demand is set aside because there is a genuine dispute as to the existence and calculation of the debt claimed, and in the alternative, because the dispute over distributable profits falls squarely within a compulsory arbitration clause which should be given great discretionary weight under s 459J(1)(b).

Parties
Plaintiff: Arris Investments Pty Ltd; First Defendant: Alex Fahd; Second Defendant: Ibtisam Fahd
Jurisdiction
Australia
Judgment Date
01 April 2010
Procedural Posture
Application to Set Aside Statutory Demand / Ex Tempore Judgment
Outcome
Statutory Demand set aside; costs ordered partly on an indemnity basis
Legal Topics
Statutory Demand, Genuine Dispute, Arbitration Clause, Set Aside Demand
Corporations Law Arbitration Statutory Demand Genuine Dispute Arbitration Clause Set Aside Demand

Case Brief

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Parties

Arris Investments Pty Ltd

Plaintiff

Alex Fahd

First Defendant

Ibtisam Fahd

Second Defendant

Procedural Posture

Application to Set Aside Statutory Demand / Ex Tempore Judgment

Legal Issues

  1. 1 Whether there is a genuine dispute as to the existence of the debt under the statutory demand
  2. 2 Whether the statutory demand should be set aside for some other reason, including the existence of a compulsory arbitration agreement

Ratio Decidendi

The statutory demand is set aside because there is a genuine dispute as to the existence and calculation of the debt claimed, and in the alternative, because the dispute over distributable profits falls squarely within a compulsory arbitration clause which should be given great discretionary weight under s 459J(1)(b).

Court Disposition

Statutory Demand set aside; costs ordered partly on an indemnity basis

Orders

  • Statutory Demand set aside.
  • Defendants to pay Plaintiff's costs on an indemnity basis from 11 February 2010 onwards.