Boson Pty Ltd v Lange Nominees Pty Ltd [1998] FCA 734

Boson Pty Ltd v Lange Nominees Pty Ltd [1998] FCA 734

The defects in the statutory demand did not cause substantial injustice, so the demand was not set aside on this ground. The applicant established genuine 'excessive charges' and 'competition' offsetting claims with a quantified total ($46,001), which exceeded the admitted debt ($8,746). Accordingly, under s 459H(3), the demand must be set aside.

Parties
Applicant: Bonson Pty Ltd; Respondent: Lange Nominees Pty Ltd
Jurisdiction
Australia
Judgment Date
24 June 1998
Procedural Posture
Application to Set Aside Statutory Demand / Judgment on Application
Outcome
Statutory demand set aside; costs awarded in favour of the applicant.
Legal Topics
Statutory Demand, Offsetting Claim, Substantial Injustice, Corporations Law S 459 G, 459 H, 459 J, Form and Defects of Demands, Costs
Corporations Law Statutory Demand Offsetting Claim Substantial Injustice Corporations Law S 459 G, 459 H, 459 J Form and Defects of Demands Costs

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Parties

Bonson Pty Ltd

Applicant

Lange Nominees Pty Ltd

Respondent

Procedural Posture

Application to Set Aside Statutory Demand / Judgment on Application

Legal Issues

  1. 1 Whether defect in statutory demand will cause substantial injustice under s 459J
  2. 2 Whether applicant has a genuine offsetting claim under s 459H
  3. 3 How to determine quantum of offsetting claim

Ratio Decidendi

The defects in the statutory demand did not cause substantial injustice, so the demand was not set aside on this ground. The applicant established genuine 'excessive charges' and 'competition' offsetting claims with a quantified total ($46,001), which exceeded the admitted debt ($8,746). Accordingly, under s 459H(3), the demand must be set aside.

Court Disposition

Statutory demand set aside; costs awarded in favour of the applicant.

Orders

  • The demand for payment dated 15 April 1998 served by the respondent on the applicant be set aside.
  • The respondent pay the applicant's costs of this application.