GONE FARMING v LONG [2001] NSWSC 816

GONE FARMING v LONG [2001] NSWSC 816

The statutory demand was set aside due to a defect in the demand: the debt was jointly owed to two creditors but the demand named and was made by only one, and was not signed by both as required by s 459E(2)(f) of the Corporations Act. This defect was substantive and not merely formal, preventing the statutory demand from standing.

Parties
Plaintiff: GONE FARMING PTY LIMITED; Defendant: PETER JOHN LONG
Jurisdiction
Australia
Judgment Date
07 September 2001
Procedural Posture
Application / Judgment on Application to Set Aside Statutory Demand
Outcome
Statutory demand set aside; no order as to costs.
Legal Topics
Statutory Demand, Genuine Dispute, Defects in Demand, Joint Creditors

Case Brief

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Parties

GONE FARMING PTY LIMITED

Plaintiff

PETER JOHN LONG

Defendant

Procedural Posture

Application / Judgment on Application to Set Aside Statutory Demand

  1. 1 Whether a statutory demand should be set aside due to a defect in creditor description and signing under s 459E(2)(f) of the Corporations Act
  2. 2 Whether there is a genuine dispute as to the debt claimed in the statutory demand
  3. 3 Whether the debt was owed jointly or severally to the named creditors

Ratio Decidendi

The statutory demand was set aside due to a defect in the demand: the debt was jointly owed to two creditors but the demand named and was made by only one, and was not signed by both as required by s 459E(2)(f) of the Corporations Act. This defect was substantive and not merely formal, preventing the statutory demand from standing.

Court Disposition

Statutory demand set aside; no order as to costs.

Orders

  • Order 1 in the application (statutory demand set aside).
  • No order as to costs; each party to pay their own costs.