ACEWISE Investments Pty Ltd v Peters

In ACEWISE Investments Pty Ltd v Peters, the plaintiff, ACEWISE Investments, sought to set aside a statutory demand issued against the defendant, Peters, under section 459E(1) of the Corporations Act 2001. The plaintiff argued that the statutory demand was invalid because it was issued without reasonable cause. The case was heard in the Federal Circuit Court of Australia. The primary legal issue was whether the statutory demand was issued without reasonable cause, as required by section 459E(1) of the Corporations Act. The court had to consider whether the plaintiff had demonstrated that the demand was oppressive, or unfair, or that the debt was disputed on substantial grounds.

The court found that the statutory demand was invalid because it was issued without reasonable cause. The plaintiff had demonstrated that the debt claimed was in dispute on substantial grounds. The court emphasised that the test for determining whether a statutory demand is issued without reasonable cause turns on the facts of each case. In this instance, the court was satisfied that the plaintiff had provided sufficient evidence to show that the demand was not reasonable, given the substantial dispute over the debt. The court noted that the statutory demand was invalid because it did not meet the criteria set out in the Corporations Act. The court set aside the statutory demand, in line with the plaintiff's application.