Aromas Cafe Toowoomba Pty Ltd v Aromas Tea & Coffee Merchants Pty Ltd, in the matter of Aromas Cafe Toowoomba Pty Ltd

The matter before the court was an application by Aromas Cafe Toowoomba Pty Ltd to set aside a statutory demand issued by Aromas Tea & Coffee Merchants Pty Ltd. Aromas Cafe sought to have the statutory demand set aside on various grounds under the Corporations Act 2001 (Cth). The primary legal issue was whether Aromas Cafe had established a genuine dispute about the existence or amount of the debt, or some other reason why the statutory demand should be set aside.

The court considered the arguments presented by both parties and examined the evidence provided. It found that Aromas Cafe had established a genuine dispute about the existence or amount of the debt, as well as some other reason why the statutory demand should be set aside. Specifically, the court held that Aromas Cafe had demonstrated that there were significant issues with the calculation of the debt and that there were other factors which warranted setting aside the statutory demand.

The court ordered that the statutory demand issued by Aromas Tea & Coffee Merchants Pty Ltd be set aside. It also ordered that the defendant pay the plaintiff's costs of and incidental to the application, with the exception of the costs order made on 14 March 2019. The court's decision provides guidance on the factors that may be taken into account when considering an application to set aside a statutory demand.