Angel Cove Pty Ltd v Global Enterprises (WA) Pty Ltd

Case [2001] WASC 23


ANGEL COVE PTY LTD -v- GLOBAL ENTERPRISES (WA) PTY LTD [2001] WASC 23



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2001] WASC 23
30/01/2001
Case No:COR:6/200124 & 25 JANUARY 2001
Coram:MASTER BREDMEYER25/01/01
6Judgment Part:1 of 1
Result: Application dismissed
PDF Version
Parties:ANGEL COVE PTY LTD (ACN 055 879 920)
GLOBAL ENTERPRISES (WA) PTY LTD (ACN 009 013 003)
DI LALLO HOLDINGS PTY LTD (ACN 009 013 003)

Catchwords:

Corporations
Application to set aside a statutory demand
Application out of time
No extension of time possible

Legislation:

Acts Interpretation Act 1901 (Cth), s 36(2)
Corporations Law, s 459G
Corporations Rules (WA), O 81G r 1(1), r 7(4)

Case References:

David Grant & Co Pty Ltd v Westpac Banking Corp (1995) 184 CLR 265
Nil

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CHAMBERS
CITATION : ANGEL COVE PTY LTD -v- GLOBAL ENTERPRISES (WA) PTY LTD [2001] WASC 23 CORAM : MASTER BREDMEYER HEARD : 24 & 25 JANUARY 2001 DELIVERED : 25 JANUARY 2001 PUBLISHED : 30 JANUARY 2001 FILE NO/S : COR 6 of 2001 MATTER : Section 459G of the Corporations Law

    and

    Angel Cove Pty Ltd (ACN 055 879 920)

BETWEEN : ANGEL COVE PTY LTD (ACN 055 879 920)
    Applicant

    AND

    GLOBAL ENTERPRISES (WA) PTY LTD (ACN 009 013 003)
    Respondent
FILE NO/S : COR 7 of 2001 BETWEEN : ANGEL COVE PTY LTD (ACN 055 879 920)
    Applicant

    AND

    DI LALLO HOLDINGS PTY LTD (ACN 009 013 003)
    Respondent

(Page 2)

Catchwords:

Corporations - Application to set aside a statutory demand - Application out of time - No extension of time possible


Legislation:

Acts Interpretation Act 1901 (Cth), s 36(2)


Corporations Law, s 459G
Corporations Rules (WA), O 81G r 1(1), r 7(4)

Result:

Application dismissed


Representation:
COR 6 of 2001

Counsel:


    Applicant : Mr L A Margaretic
    Respondent : Mr D E Eley


Solicitors:

    Applicant : Margaretic Morton
    Respondent : Eley Palmer Archer


COR 7 of 2001

Counsel:


    Applicant : Mr L A Margaretic
    Respondent : Mr D E Eley


Solicitors:

    Applicant : Margaretic Morton
    Respondent : Eley Palmer Archer

(Page 3)

Case(s) referred to in judgment(s):

David Grant & Co Pty Ltd v Westpac Banking Corp (1995) 184 CLR 265

Case(s) also cited:



Nil

(Page 4)

1 MASTER BREDMEYER : These are applications to set aside two statutory demands and are made under s 459G of the Corporations Law. They first came before me on 24 January 2001 when the applicant was represented by counsel. The respondents argued that the applications were outside the 21 day time limit imposed by the section and therefore should be dismissed. I agreed with that submission and made orders dismissing the applications and ordered the applicant to pay the respondents' costs to be taxed if not agreed. I thought counsel for the applicant was caught by surprise by the respondents' submissions and I directed that the orders were not to be executed for 24 hours. I did so in order that counsel might consult with his instructing solicitor. Pursuant to that direction, the applicant has asked me to rehear the application which I have done on short notice.

2 In each of these applications a statutory demand was served on 19 December 2000 and the applications to set aside the demands were filed in this Court and served on 12 January 2001. Section 459G(2), (3) of the Corporations Law provides:


    "459G(1) ...

    (2) An application may only be made within 21 days after the demand is so served.

    (3) An application is made in accordance with this section only if, within those 21 days:


      (a) an affidavit supporting the application is filed with the Court; and

      (b) a copy of the application, and a copy of the supporting affidavit, are served on the person who served the demand on the company."

3 According to the section, the 21 days expired on Tuesday 9 January 2001. Counsel for the applicant asked me to extend time under the Corporation Rules O 81G r 7(4). I quote all of r 7 so that subrule (4) can be seen in context:

    "7. Calculation of time

    (1) If, for any purpose, this order -


      (a) prohibits, permits or requires an act or thing to be done within, by, or before the end of; or

(Page 5)
    (b) otherwise prescribes, allows or provides for,

    a period of time before or after a particular day, act or event, the period is to be calculated without counting that day, or the day of the act or event, as the case may be.

    (2) Without limiting subrule (1), in calculating how many days a particular day, act or event is before or after another day, act or event, only the first day, or the day of the first act or event, is to be counted.

    (3) If the last day of any period prescribed or allowed by this order for an act or thing to be done falls on a day that is not a business day in the place where the act or thing is to be or may be done, the act or thing may be done on the first business day in the place after that day.

    (4) In calculating a period of time for the purposes of this order, the period beginning on 25 December in a year and ending at the end of 1 January in the next year is not to be counted."

    He also relies on r 1(1) which provides:

      "1. Application of this order and other rules of court

      (1) Unless the Court otherwise orders, this order applies to a proceeding in the Court under the Corporations Law, or the ASIC Law, that is commenced on or after the day on which the Supreme Court Amendment Rules (No 2) 2000 came into operation.

      ... "

4 I consider that O 81G r 7(4) does not apply to these applications. The 21 day period is not prescribed by the order. The 21 day period is fixed by s 459G. There is no power to extend that period under s 459G, s 467A or s 1322: see David Grant & Co Pty Ltd v Westpac Banking Corp (1995) 184 CLR 265.

5 The Corporations Rules cannot affect that principle. If the 21 day period had been prescribed by the Corporations Rules then r 7(4) would give an automatic extension between 25 December and 1 January for the Christmas period. By way of comparison, the general Rules of the Supreme Court, O 63 r 4 prescribes a 21 day appeal period and O 3 r 3



(Page 6)
    provides for an automatic extension for lodging an appeal notice between 24 December and 15 January next. But, because the 21 day period in this case is fixed by statute, O 81G r 7(4) does not apply. There is no statutory power to give an extension so the applications will be dismissed.

6 The above reasons are as I delivered them orally. The following thought is new and occurred to me as I was preparing these reasons for publication - which I did at the request of the applicant. I illustrate the pre-eminence of the statute over the rule in this way. If, for example, the 21 day period for an application to set aside a statutory demand under s 459G, expired on a public holiday, the applicant would get an extension of time to the next business day. But that would be under statute, viz s 36(2) of the Acts Interpretation Act 1901 (Cth), and not by virtue of O 81G r 7(3).

7 The applicant is to pay the respondents' costs of today to be taxed, if not agreed.

Details
AGLC
Angel Cove Pty Ltd v Global Enterprises (WA) Pty Ltd [2001] WASC 23
Case
[2001] WASC 23
Decision Date

CaseChat Overview and Summary

In the case of Angel Cove Pty Ltd v Global Enterprises (WA) Pty Ltd, the matter came before the court on an application by Angel Cove to set aside a statutory demand issued by Global Enterprises. The primary dispute was whether the statutory demand should be set aside and, if so, whether the application to do so should be granted despite being out of time. The court was tasked with determining the appropriate legal principles to apply in circumstances where an application to set aside a statutory demand was both out of time and without justification for an extension of time.

The court had to consider whether it had the discretion to extend the time within which Angel Cove could apply to set aside the statutory demand, given the absence of any special circumstances warranting such an extension. The legal issue centred on the interpretation and application of the relevant statutory provisions and case law that govern the setting aside of statutory demands, particularly in relation to the time constraints imposed by the law. The court also had to examine whether the delay in making the application and the absence of a satisfactory explanation for the delay were sufficient grounds for granting an extension of time.

The court held that the statutory provisions governing the setting aside of statutory demands were clear and unequivocal in terms of the time limits for making such applications. Given the absence of any special circumstances that would warrant an extension of time, the court found that it did not have the discretion to extend the time for Angel Cove to apply to set aside the statutory demand. Consequently, the application was dismissed on the basis that it was out of time and there were no exceptional circumstances to warrant an extension. The court's reasoning was firmly rooted in the statutory framework and the principle that time limits for legal actions must be strictly adhered to in the absence of justifiable reasons for an extension. The final orders of the court dismissed the application to set aside the statutory demand, with no extension of time granted.

Orders

Orders of the court

Application dismissed

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.