Brownport Management Ltd v Aqua-Tech 21 Pty Ltd

Brownport Management Ltd commenced proceedings against Aqua-Tech 21 Pty Ltd, seeking payment of a debt of $29,500 plus interest. Brownport issued a statutory demand under section 459E of the Corporations Act 2001 (Cth) which Aqua-Tech sought to set aside. The matter was heard by a Master who, following an application by Aqua-Tech, granted the order to set aside the demand. Brownport appealed the Master's decision to the Supreme Court, seeking special leave to rely on further affidavits not previously filed. Aqua-Tech opposed the application for special leave.

The central legal issues were whether the statutory demand was valid, and if the Master correctly exercised their discretion to set aside the demand. Brownport argued that the demand was valid and the Master should not have exercised their discretion to set aside the demand. Aqua-Tech contended that the statutory demand was invalid due to defects, and the Master correctly exercised their discretion. The appeal raised the additional issue of whether Brownport should be granted special leave to rely on further affidavits.

The court found that the statutory demand contained defects, including an incorrect amount of the debt claimed, which rendered it invalid. Despite these defects, the court held that the Master correctly exercised their discretion to set aside the demand as Aqua-Tech had a genuine defence to the claim. The court also found that Brownport should be granted special leave to rely on further affidavits, as the additional evidence was relevant and necessary to determine the appeal. The appeal was dismissed.

No orders were made as the appeal was dismissed. However, Brownport was granted special leave to rely on further affidavits.