In the matter of Universal Property Group Pty Limited [2019] NSWSC 796

In the matter of Universal Property Group Pty Limited [2019] NSWSC 796

The applicant's arguments about the effect of nomination on liability for instalment fees were found to be reasonably arguable and not patently feeble, thus giving rise to a genuine dispute under section 459H(1)(a) of the Corporations Act. The statutory demand was set aside on this basis.

Jurisdiction
Australia
Judgment Date
28 June 2019
Procedural Posture
Application to Set Aside Statutory Demand / Principal Judgment
Outcome
Statutory demand set aside; defendants to pay plaintiff's costs
Legal Topics
['statutory Demand' 'genuine Dispute' 'contract Interpretation' 'nomination Clauses in Option Contracts']
['corporations Law' 'contract Law'] ['statutory Demand' 'genuine Dispute' 'contract Interpretation' 'nomination Clauses in Option Contracts']

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Procedural Posture

Application to Set Aside Statutory Demand / Principal Judgment

Legal Issues

  1. 1 ['Whether there is a genuine dispute as to the existence of the debt under section 459H(1)(a) of the Corporations Act' 'Proper interpretation of nomination and liability clauses in the Put and Call Option Deed' 'Whether the statutory demand was an abuse of process']

Ratio Decidendi

The applicant's arguments about the effect of nomination on liability for instalment fees were found to be reasonably arguable and not patently feeble, thus giving rise to a genuine dispute under section 459H(1)(a) of the Corporations Act. The statutory demand was set aside on this basis.

Court Disposition

Statutory demand set aside; defendants to pay plaintiff's costs

Orders

  • ['Pursuant to section 459H of the Corporations Act 2001 (Cth), the statutory demand dated 7 March 2019 served by the defendants upon the plaintiff be set aside.' "The defendants to pay the plaintiff's costs of the proceedings."]