Cremona Bros Pty Ltd v Chris Antico Pty Ltd [2009] NSWSC 390

Cremona Bros Pty Ltd v Chris Antico Pty Ltd [2009] NSWSC 390

The statutory demand was set aside because its extreme and studied complexity, departure from ordinary accounting practices, lack of prior explanation of the asserted amount, need for extensive supporting material, and acknowledged calculation errors showed that the plaintiff reasonably disputed the debt and that...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
08 May 2009
Procedural Posture
Application to Set Aside Creditor's Statutory Demand / Judgment
Outcome
Creditor's statutory demand set aside; defendant ordered to pay plaintiff's costs on the indemnity basis.
Legal Topics
['winding Up' "creditor's Statutory Demand" 'disputed Debt' 'abuse of Statutory Process' 'indemnity Costs']
['corporations' 'insolvency'] ['winding Up' "creditor's Statutory Demand" 'disputed Debt' 'abuse of Statutory Process' 'indemnity Costs']

Source-derived case record

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Procedural Posture

Application to Set Aside Creditor's Statutory Demand / Judgment

Legal Issues

  1. 1 ["Whether the creditor's statutory demand for $144,497.62 should be set aside." 'Whether the statutory demand was so complex and unfair that it amounted to an abuse of the statutory demand process.' 'Whether the plaintiff reasonably disputed the amount asserted in the statutory demand.']

Ratio Decidendi

The statutory demand was set aside because its extreme and studied complexity, departure from ordinary accounting practices, lack of prior explanation of the asserted amount, need for extensive supporting material, and acknowledged calculation errors showed that the plaintiff reasonably disputed the debt and that the demand was an abusive and grossly unfair use of the statutory demand process.

Court Disposition

Creditor's statutory demand set aside; defendant ordered to pay plaintiff's costs on the indemnity basis.

Orders

  • ["The creditor's statutory demand for payment of an asserted debt of Cremona Bros Pty Ltd to Chris Antico Pty Ltd dated 4 September 2008 and served on 9 September 2008 be set aside." "The defendant pay the plaintiff's costs of these proceedings. Costs are to be assessed on the indemnity basis."]