In the matter of Bastow Civil Constructions Pty Ltd [2017] NSWSC 934

In the matter of Bastow Civil Constructions Pty Ltd [2017] NSWSC 934

The statutory demand had to be set aside because there was at least a genuine dispute about the debt: Networx had left drill rods in the ground, and Bastow had a serious arguable basis to contend that this was not the proper provision of the services and that payment under the subcontract was therefore not due. There was also some other reason to set aside the demand because the amount claimed was arguably not presently due and payable where the works were arguably not properly performed.

Jurisdiction
Australia
Judgment Date
21 April 2017
Procedural Posture
Application to Set Aside a Creditor's Statutory Demand / Originating Process Heard in Equity Corporations List; Principal Judgment
Outcome
Creditor's statutory demand set aside; Defendant ordered to pay Plaintiff's costs.
Legal Topics
["creditor's Statutory Demand" 'genuine Dispute' 'offsetting Claim' 'defective Building Work' 'debt Due and Payable' 'costs']
['corporations Law' 'insolvency' 'construction Law' 'contract Law'] ["creditor's Statutory Demand" 'genuine Dispute' 'offsetting Claim' 'defective Building Work' 'debt Due and Payable' 'costs']

Case Brief

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Procedural Posture

Application to Set Aside a Creditor's Statutory Demand / Originating Process Heard in Equity Corporations List; Principal Judgment

Legal Issues

  1. 1 ["Whether there was a genuine dispute about the existence or amount of the debt claimed in the creditor's statutory demand." 'Whether Bastow had an offsetting claim against Networx arising from alleged defects in the works.' 'Whether some other reason existed under s 459J of the Corporations Act 2001 (Cth) to set aside the statutory demand.']

Ratio Decidendi

The statutory demand had to be set aside because there was at least a genuine dispute about the debt: Networx had left drill rods in the ground, and Bastow had a serious arguable basis to contend that this was not the proper provision of the services and that payment under the subcontract was therefore not due. There was also some other reason to set aside the demand because the amount claimed was arguably not presently due and payable where the works were arguably not properly performed.

Court Disposition

Creditor's statutory demand set aside; Defendant ordered to pay Plaintiff's costs.

Orders

  • ["The creditor's statutory demand issued by Networx Construction Pty Ltd dated 16 September 2016 to Bastow Civil Constructions Pty Ltd be set aside." "The Defendant pay the Plaintiff's costs of these proceedings, as agreed or as assessed."]