Arkmill Pty Ltd v Tippers & Co Pty Ltd

Arkmill Pty Ltd made an application to set aside a statutory demand against it by Tippers & Co Pty Ltd, which was issued pursuant to section 459H of the Corporations Act 2001. The demand was for the total of various invoices in the amount of $20,000. Arkmill contended that the debt was genuinely disputed and that the invoices were issued prior to its incorporation. Furthermore, Arkmill argued that the debts were incurred by another company and therefore it was not liable for them. Tippers, on the other hand, asserted that it was entitled to a right of subrogation as a creditor of the former trustee and that the new trustee was personally liable as a debtor of its predecessor.

The court had to decide whether the statutory demand should be set aside and whether Tippers was entitled to a right of subrogation against Arkmill. The court found that the debt was genuinely disputed because Arkmill had not received the services for which the invoices were issued. Additionally, the invoices were issued prior to the incorporation of Arkmill, and therefore the company was not liable for those debts. The court also held that Tippers was not entitled to a right of subrogation against Arkmill, and the new trustee was not personally liable as a debtor of its predecessor.

In conclusion, the court ordered that the statutory demand be set aside and Tippers pay the applicant’s costs of the application to be assessed. The court found that Arkmill had established that the debt was genuinely disputed, and therefore the statutory demand was properly set aside. The court also found that Tippers was not entitled to a right of subrogation against Arkmill and that the new trustee was not personally liable as a debtor of its predecessor.