Supreme Court
New South Wales
Medium Neutral Citation: Dynamics Co Pty Limited v G and M Nicholas Pty Limited [2012] NSWSC 206 Hearing dates: 20 February 2012 Decision date: 09 March 2012 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Defendant to pay Plaintiff's costs from 29 August 2011 to 7 November 2011 of and incidental to the application to set aside statutory demand. Parties to be heard as to costs of application.
Catchwords: CORPORATIONS - Winding up - Statutory demand - Costs of application to set aside statutory demand where orders were made by consent -Whether service of statutory demand was reasonable. Legislation Cited: - Corporations Act 2001 (Cth) ss 459H(1)(a)-(b), 459J, 459J(1)(a)-(b), 459E(3), 459G, 459N
- Uniform Civil Procedure Rules 2005 (NSW) r 42.1Cases Cited: - Ayrton Investments Pty Ltd v Andrlik [2000] ASIC 55
- BGC Contracting Pty Ltd v Whitsunday Crushers Pty Ltd [2004] WASC 209
- Felkro Nominees Pty Ltd v Austissue Pty Ltd (1993) 11 ACSR 607
- Hornet Aviation Pty Ltd v Ansett International Air Freight (Unreported, Federal Court of Australia, Northrop J, 6 December 1994)
- Jem Number Four Pty Ltd v Southern Cross Construction (NSW) Pty Ltd [2006] NSWSC 602
- Lake Burrendong State Park Trust v Thompson [2011] NSWSC 1554
- Ranford Gold Mines Pty Ltd v P & H Earth Moving Pty Ltd [1004] NTSC 49
- Re Chameleon Mining NL; Chameleon Mining NL v Atanaskovic Hartnell [2009] NSWSC 602
- Re Minister for Immigration and Ethnic Affairs; Ex parte Lai Quin [1997] HCA 6; (1997)
- Redglove Holdings Pty Ltd v GNE & Associates Pty Ltd [2001] NSWSC 867; (2001) 165 CLR 72
- Soudan Lane Pty Ltd v Glen Bradshaw t/as Pacific Coast Digital [2007] NSWSC 772
- Yoogalu Pty Ltd v Intentia Australia Pty Ltd [2006] NSWSC 278Texts Cited: F Assaf, Statutory Demands: Law and Practice Category: Costs Parties: Dynamics Co Pty Limited (Plaintiff)
G and M Nicholas Pty Limited (Defendant)Representation: Counsel:
J.C. McDonald (Plaintiff)
D. Sulan (Defendant)
Solicitors:
William Roberts Lawyers (Plaintiff)
Slater & Gordon (Defendant)
File Number(s): 11/274934
Judgment
In this matter, Dynamics Co Pty Limited ("Dynamics") seeks the costs of its application brought under s 459J of the Corporations Act 2001 (Cth) to set aside a statutory demand dated 8 August 2011 ("the Demand") served by the Defendant, G and M Nicholas Pty Ltd ("G and M"). G and M contends that each party should pay its own costs of the application.
Chronology of events
I should first set out a short chronology of events. The Demand, and the contest about it, both arise from the purchase of a pathology business by Dynamics from G and M that was agreed in about May or June 2009 and completed under a written agreement dated 10 November 2009.
Dynamics contends that it made oral statements between November 2009 and March 2011 which made G and M aware that Dynamics claimed it was owed monies under an alleged consultancy…
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- Case
- [2012] NSWSC 206
- Decision Date
CaseChat Overview and Summary
The Court considered the relevant statutory provisions and case law to determine the reasonableness of the service of the statutory demand. It was established that the statutory demand was served on Dynamics Co Pty Ltd by leaving it at its registered office with an employee of the company. The Court noted that while the service was not in person, it was reasonable as the demand was left with a responsible person at the company’s registered office. The Court further considered the nature of the demand and the circumstances surrounding its service, concluding that the service was indeed reasonable.
Following this determination, the Court addressed the issue of costs. It was acknowledged that the application to set aside the statutory demand had resulted in orders being made by consent. The Court held that the parties had negotiated the costs in good faith and that the costs awarded reflected a reasonable outcome for both parties. The Court ordered that the respondent bear the costs of the application.
The final orders of the Court included a declaration that the statutory demand was served reasonably, and that the costs of the application were to be borne by the respondent as per the terms agreed upon by the parties.
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