Andrew James McKell Ward v Cartoon Ltd

In the matter of *Andrew James McKell Ward v Cartoon Ltd*, the applicant, Mr. Ward, sought to have a statutory demand set aside. The respondent, Cartoon Ltd, had issued the demand based on an alleged debt arising from a loan agreement. Mr. Ward contended that the debt was genuinely disputed on substantial grounds.

The primary legal issue before the court was whether Mr. Ward had established a sufficient dispute to warrant setting aside the statutory demand. This required the court to assess whether the grounds of dispute raised by Mr. Ward were substantial and bona fide, rather than merely vexatious or frivolous. The court also considered the nature of the loan agreement and the evidence presented by both parties regarding the alleged repayment or discharge of the debt.

The court's reasoning focused on the established principles for setting aside statutory demands, which require a genuine dispute about the existence of the debt. His Honour Justice Ian Thompson found that Mr. Ward had presented credible evidence suggesting that the loan had been repaid or that there were other valid defences to the claim. Consequently, the court determined that the dispute was genuine and substantial, meeting the threshold for setting aside the statutory demand. The court made orders setting aside the statutory demand.