Abraham v Joadja;Abraham v Jasmman

The applicants, Abraham, sought the winding up of two companies, Joadja and Jasmman, pursuant to sections 459P and 459A of the Corporations Act 2001. The companies opposed the application, arguing that the statutory demands on which the application was based were served before the validity of earlier demands had been tested, and that the companies were not insolvent. The applicants also alleged that the jurats on the affidavits were forged. The applicants did not seek leave under section 459S of the Act to rely on any grounds other than solvency. The court had to determine whether the statutory demands were valid, whether the companies were actually insolvent, and whether the proceedings were an abuse of process. The court held that the presumption of insolvency was not rebutted, and that the companies were actually insolvent. The court also found that the proceedings were not an abuse of process, and that the process of the court was not being used for a foreign purpose. Consequently, the companies were wound up.