Creata (Aust) Pty Ltd v Gary Adrian Faull

Creata (Aust) Pty Ltd (the applicant) sought an extension of time to comply with a statutory demand issued by Gary Adrian Faull (the respondent). The applicant intended to apply for leave to appeal a primary judge's decision that refused to set aside the statutory demand. The matter came before White JA in the Court of Appeal of New South Wales.

The central legal issue was whether an extension of time for compliance with the statutory demand should be granted, given the applicant's intention to seek leave to appeal the refusal to set aside that demand. This required the court to consider whether there was a material possibility of prejudice to the applicant, whether the grounds of appeal were sufficiently arguable, and whether any appeal would be rendered nugatory if an extension were not granted.

White JA granted the extension of time. The court applied principles relating to the granting of extensions in the context of statutory demands and appeals. The decision was influenced by the applicant's undertaking to pursue an expedited hearing of its application for leave to appeal and any subsequent appeal. This undertaking addressed concerns about the potential for the appeal to become nugatory.

The orders made provided that the time for compliance with the statutory demand was extended until seven days after the determination of the applicant's application for leave to appeal and any appeal. The costs of the notice of motion hearing were awarded to the applicant, and the matter was listed for directions.