In the matter of HWC Contracting Pty Ltd [2021] NSWSC 1684

In the matter of HWC Contracting Pty Ltd [2021] NSWSC 1684

The Court was satisfied, based on the payment schedule and other evidence, that HWC Contracting had a bona fide and genuine offsetting claim relating to alleged defective work by Lidco, meeting the low threshold for plausibility and particularity under s 459H. Therefore, the statutory demand should be set aside.

Jurisdiction
Australia
Judgment Date
13 December 2021
Procedural Posture
Application to Set Aside Statutory Demand / Decision on Application
Outcome
Statutory demand set aside.
Legal Topics
['statutory Demand' 'offsetting Claim' 'security of Payment']
['corporations Law' 'building and Construction'] ['statutory Demand' 'offsetting Claim' 'security of Payment']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application to Set Aside Statutory Demand / Decision on Application

Legal Issues

  1. 1 ['Whether there exists a genuine offsetting claim sufficient to set aside the statutory demand under s 459H of the Corporations Act 2001 (Cth)']

Ratio Decidendi

The Court was satisfied, based on the payment schedule and other evidence, that HWC Contracting had a bona fide and genuine offsetting claim relating to alleged defective work by Lidco, meeting the low threshold for plausibility and particularity under s 459H. Therefore, the statutory demand should be set aside.

Court Disposition

Statutory demand set aside.

Orders

  • ['Order that the statutory demand issued by the defendant on 26 October 2021 be set aside pursuant to section 459H of the Corporations Act 2001 (Cth).' "Order the defendant to pay the plaintiff's costs of the application."]