Daewoo v Suncorp-Metway [2000] NSWSC 35

Daewoo v Suncorp-Metway [2000] NSWSC 35

A statutory demand claiming a foreign currency debt under a commercial agreement constitutes a valid demand under s 459E of the Corporations Law, provided the foreign currency functions as money and the debtor had agreed to payment in that currency; substantial compliance with form and procedural requirements (including currency denomination and affidavit wording) suffices where no substantial injustice is caused; failure to specify a NSW address for service and arguments about creditor protection or ongoing negotiations are not grounds to set aside the demand under s 459J.

Jurisdiction
Australia
Judgment Date
11 February 2000
Procedural Posture
Application to Set Aside Statutory Demand / Judgment on Application
Outcome
Summons to set aside demand dismissed
Legal Topics
['statutory Demand' 'winding Up' 'foreign Currency Debts' 'affidavit Compliance' 'address for Service' 'substantial Compliance' 'defects in Demand']
['corporations Law' 'insolvency Law' 'contract Law'] ['statutory Demand' 'winding Up' 'foreign Currency Debts' 'affidavit Compliance' 'address for Service' 'substantial Compliance' 'defects in Demand']

Case Brief

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Procedural Posture

Application to Set Aside Statutory Demand / Judgment on Application

Legal Issues

  1. 1 ['Whether a statutory demand can be validly expressed in a foreign currency under s 459E of the Corporations Law' 'Whether failure to make demand in Australian currency constitutes a defect within s 459J(1)(a)' 'Whether the affidavit supported the demand in accordance with procedural rules' 'Whether the failure to specify an address for service in New South Wales invalidates the demand' "Whether there is 'some other reason' to set aside the demand under s 459J(1)(b)"]

Ratio Decidendi

A statutory demand claiming a foreign currency debt under a commercial agreement constitutes a valid demand under s 459E of the Corporations Law, provided the foreign currency functions as money and the debtor had agreed to payment in that currency; substantial compliance with form and procedural requirements (including currency denomination and affidavit wording) suffices where no substantial injustice is caused; failure to specify a NSW address for service and arguments about creditor protection or ongoing negotiations are not grounds to set aside the demand under s 459J.

Court Disposition

Summons to set aside demand dismissed

Orders

  • ['Summons dismissed' 'Costs reserved for further submissions']