In the Matter of Suters Holdings Pty Limited [2012] NSWSC 1051

The statutory demand was entirely misconceived as no reasonable basis for the claimed debt was shown and a genuine dispute existed. Failure to withdraw the demand after a dispute was raised was deemed an act of delinquency, justifying the order for indemnity costs.

Parties: Plaintiff: Suters Holdings Pty Limited; Defendant: Paul Stephenson
Jurisdiction: Australia
Judgment Date: 24 July 2012
Procedural Posture: Application to Set Aside Statutory Demand / Final Judgment
Outcome: Statutory demand set aside with indemnity costs
Legal Topics: Creditor's Statutory Demand, Application to Set Aside, Indemnity Costs, Genuine Dispute

Corporations Law Creditor's Statutory Demand Application to Set Aside Indemnity Costs Genuine Dispute

Case Brief

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Parties

Suters Holdings Pty Limited

Plaintiff

Paul Stephenson

Defendant

Procedural Posture

Application to Set Aside Statutory Demand / Final Judgment

Legal Issues

1 Whether the statutory demand should be set aside under Corporations Act 2001 s 459H or s 459J
2 Whether indemnity costs should be ordered against the defendant

Ratio Decidendi

Court Disposition

Statutory demand set aside with indemnity costs

Orders

Order that the creditor's statutory demand dated 31 January 2012 and served by the defendant on the plaintiff company be set aside.
Order that the defendant pay the plaintiff's costs, such costs to be assessed on the indemnity basis.