Ambassador at Redcliffe Pty Ltd v Barreau Peninsula Property Pty Ltd

Ambassador at Redcliffe Pty Ltd brought an application to set aside four statutory demands issued by Barreau Peninsula Property Pty Ltd, which sought winding up of Ambassador. The dispute was heard in the Federal Circuit Court of Australia. The key legal issues centred around the procedural validity of the statutory demands and whether Ambassador had a genuine dispute as to the debt claimed. The central question was whether the statutory demands were defective due to the timing of the affidavits and whether Ambassador had a genuine dispute regarding the debts under the new agreements.

The Court found that the affidavits supporting the statutory demands were sworn 18 days prior to the demands being made, which did not constitute a defect requiring the demands to be set aside. The Court also assessed whether Ambassador had a genuine dispute as to the debt. The Court noted that the new agreements contained options, but the assurance given that the new agreement did not waive rights under the previous agreement was not sufficient to establish a genuine dispute as to the obligation to pay the amounts due under the previous agreement.

Consequently, the Court dismissed the application to set aside the statutory demands. The Court invited further submissions as to the costs of the application.