Patonga Beach Holdings Pty Ltd v Lyons [2009] NSWSC 1257

Patonga Beach Holdings Pty Ltd v Lyons [2009] NSWSC 1257

The statutory demand was defective because it did not specify which subparagraph of clause 5(c) was relied on or the factual basis for liability, thus preventing the plaintiff from adequately assessing or disputing the demand. This defect would cause substantial injustice unless the demand was set aside.

Jurisdiction
Australia
Judgment Date
20 November 2009
Procedural Posture
Application to Set Aside Statutory Demand / Judgment
Outcome
Statutory demand set aside
Legal Topics
['statutory Demand' 'winding Up in Insolvency' 'debt Description Defects' 'substantial Injustice']
['corporations Law' 'equity'] ['statutory Demand' 'winding Up in Insolvency' 'debt Description Defects' 'substantial Injustice']

Case Brief

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Procedural Posture

Application to Set Aside Statutory Demand / Judgment

Legal Issues

  1. 1 ['Whether the statutory demand contained a defect under s 459J(1)(a) of the Corporations Act 2001 (Cth)' 'Whether substantial injustice would be caused unless the statutory demand is set aside']

Ratio Decidendi

The statutory demand was defective because it did not specify which subparagraph of clause 5(c) was relied on or the factual basis for liability, thus preventing the plaintiff from adequately assessing or disputing the demand. This defect would cause substantial injustice unless the demand was set aside.

Court Disposition

Statutory demand set aside

Orders

  • ['The statutory demand dated 17 April 2009 and served on 22 April 2009 be set aside under s 459J(1)(a) of the Corporations Act 2001 (Cth).']