In the matter of Premier Vacations Pty Ltd [2020] NSWSC 619

In the matter of Premier Vacations Pty Ltd [2020] NSWSC 619

Premier's evidence of an oral agreement for a 20% discount and six months credit, together with an equivocal history of irregular and delayed payments, raised a genuine dispute as to a substantial part of the debt claimed. The affidavit evidence did not provide a sufficient evidentiary basis to calculate a substantiated amount under s 459H. Because the demand included a very substantial disputed amount and the Court could not quantify the substantiated amount, continuation of the demand would be inconsistent with the proper operation of the statutory regime, providing another reason to set it aside under s 459J(1)(b) of the Corporations Act 2001 (Cth).

Jurisdiction
Australia
Judgment Date
07 April 2020
Procedural Posture
Application to Set Aside Creditor's Statutory Demand Under Ss 459 H and 459 J of the Corporations Act 2001 (cth) / Principal Judgment; Ex Tempore Judgment Revised 8 April 2020
Outcome
Creditor's statutory demand set aside.
Legal Topics
["creditor's Statutory Demand" 'genuine Dispute as to Existence or Amount of Debt' 'defect in Statutory Demand' 'substantial Overstatement of Debt' 'setting Aside Statutory Demand']
['corporations Law' 'insolvency Law'] ["creditor's Statutory Demand" 'genuine Dispute as to Existence or Amount of Debt' 'defect in Statutory Demand' 'substantial Overstatement of Debt' 'setting Aside Statutory Demand']

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Procedural Posture

Application to Set Aside Creditor's Statutory Demand Under Ss 459 H and 459 J of the Corporations Act 2001 (cth) / Principal Judgment; Ex Tempore Judgment Revised 8 April 2020

Legal Issues

  1. 1 ['Whether there was a genuine dispute as to the existence or amount of the debt claimed in the statutory demand under s 459H of the Corporations Act 2001 (Cth).' 'Whether the Court could determine a substantiated amount under s 459H of the Corporations Act 2001 (Cth).' 'Whether the statutory demand should be set aside under s 459J of the Corporations Act 2001 (Cth) because of a defect or for some other reason, including inconsistency with the statutory regime.']

Ratio Decidendi

Premier's evidence of an oral agreement for a 20% discount and six months credit, together with an equivocal history of irregular and delayed payments, raised a genuine dispute as to a substantial part of the debt claimed. The affidavit evidence did not provide a sufficient evidentiary basis to calculate a substantiated amount under s 459H. Because the demand included a very substantial disputed amount and the Court could not quantify the substantiated amount, continuation of the demand would be inconsistent with the proper operation of the statutory regime, providing another reason to set it aside under s 459J(1)(b) of the Corporations Act 2001 (Cth).

Court Disposition

Creditor's statutory demand set aside.

Orders

  • ["The creditor's statutory demand dated 9 December 2019 issued by LBS Group Australia Pty Ltd be set aside." "The Defendant pay the Plaintiff's costs of the application, as agreed or as assessed."]