Braams Group Pty Ltd v Miric

Braams Group Pty Ltd (the applicant) sought to set aside a statutory demand issued by Miric (the respondent) on the basis that the demand related to a disputed judgment debt. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the court was whether the applicant had failed to lodge an application to set aside the statutory demand within the prescribed time limit, and if so, what the consequences of that failure were. The court also considered whether it was an abuse of process for a creditor to exploit the rebuttable presumption of insolvency, which arises from the failure to comply with a statutory demand, to recover a disputed debt under the current statutory scheme.

The court reasoned that the applicant had not lodged its application to set aside the statutory demand within the time prescribed by the Corporations Act 2001 (Cth). It held that the statutory scheme, as currently constituted, permits a creditor to issue a statutory demand for a debt that is the subject of a dispute, including a disputed judgment debt. The court found that the failure to comply with the time limit for setting aside the demand meant that the presumption of insolvency was engaged, and it was not an abuse of process for the creditor to rely on this presumption to pursue recovery of the debt. The court noted that the applicant had not demonstrated any grounds for setting aside the demand that would overcome the consequences of the late filing.

The appeal was dismissed, and the applicant was ordered to pay the respondent's costs.