Aleem Pty Limited as Trustee for the Mini-Tankers IP Trust.

The proceeding concerned an application by Aleem Pty Limited as Trustee for the Mini-Tankers IP Trust (the applicant) seeking to set aside a statutory demand issued by the respondent, a creditor. The applicant argued that it had a genuine dispute with the respondent regarding the debt claimed in the statutory demand, and that the demand should therefore be set aside pursuant to s 459G of the Corporations Act 2001 (Cth). The application was heard by Justice Murray.

The central legal issue before the Court was whether there was a "genuine dispute" about the existence or amount of the debt within the meaning of s 459H(1)(a) of the Corporations Act 2001 (Cth). This required the Court to assess whether the applicant had raised a substantial and not merely illusory or vexatious dispute concerning the debt, supported by evidence.

Justice Murray considered the evidence presented by both parties regarding the alleged debt. The applicant contended that the debt was subject to a set-off claim arising from alleged breaches of contract by the respondent. The Court analysed the nature of the alleged set-off and the evidence supporting it, applying the principles established in cases concerning statutory demands, which require a genuine dispute to be based on substantial grounds and not be a mere assertion. The Court found that the applicant had failed to demonstrate a sufficiently substantial or arguable case for the alleged set-off to constitute a genuine dispute.

Consequently, the Court dismissed the application to set aside the statutory demand.