Eiros Pty Ltd v St George Bank Ltd - [2008] FCA 1475

FEDERAL COURT OF AUSTRALIA
Eiros Pty Ltd v St George Bank Ltd [2008] FCA 1475
CORPORATIONS – statutory demand – application to vary or set aside – off-setting claim constituted by a costs order – whether other costs orders should be set-off against the offsetting claim
Aussie Vic Plant Hire Ltd v Esanda Finance Corporation Limited (2008) 232 CLR 314
Barker v Hemming (1880) 5 QBD 609
David v Rees [1904] 2 KB 435
Edwards v Hope (1885) 14 QBD 922
Hassell v Sanely [1896] 1 Ch 607
Lockley v National Blood Transfusion Service [1992] 1 WLR 492
Midas v Equator [2007] 25 ACLC 1038
Pringle v Gloag (1879) 10 Ch D 676
Reid v Cupper [1915] 2 KB 147
Wentworth v Wentworth (unreported, Supreme Court of New South Wales, Young J, 12 December 1994)
Williams, Civil Procedure Victoria
EIROS PTY LTD, THIRTEENTH CORP PTY LTD, APADANA PTY LTD, SHALRIDGE PTY LTD, BOMAN IRANI PTY LTD and COMBULK PTY LTD v ST GEORGE BANK LIMITED
VID 505 of 2008
FINKELSTEIN J
3 OCTOBER 2008
MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VID 505 of 2008

BETWEEN:

EIROS PTY LTD,
THIRTEENTH CORP PTY LTD,
APADANA PTY LTD,
SHALRIDGE PTY LTD,
BOMAN IRANI PTY LTD and
COMBULK PTY LTD
Plaintiffs

AND:

ST GEORGE BANK LIMITED
Defendant

JUDGE:

FINKELSTEIN J

DATE OF ORDER:

3 OCTOBER 2008

WHERE MADE:

MELBOURNE

THE COURT ORDERS THAT:
1.The debt claimed in the statutory demands dated 12 June 2008, served by the defendant on Eiros Pty Ltd, Thirteenth Corp Pty Ltd, Apadana Pty Ltd, Shalridge Pty Ltd, Boman Irani Pty Ltd and Combulk Pty Ltd, be reduced by $14,075.98 to $290,068.90.
2.The period for compliance with the statutory demands shall end on 17 October 2008.
3.The plaintiffs’ application is otherwise dismissed.
4.The plaintiffs pay the defendant’s costs to be taxed in default of agreement.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

VID 505 of 2008

BETWEEN:

EIROS PTY LTD,
THIRTEENTH CORP PTY LTD,
APADANA PTY LTD,
SHALRIDGE PTY LTD,
BOMAN IRANI PTY LTD and
COMBULK PTY LTD
Plaintiffs

AND:

ST GEORGE BANK LIMITED
Defendant

JUDGE:

FINKELSTEIN J

DATE:

3 OCTOBER 2008

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

During the last five years Dr Boman Irani, his wife Homai Irani and corporate entities associated with them (the plaintiffs) have been engaged in a battle with St George Bank which is being waged in State and Federal courts. To this point the Iranis and the plaintiffs have had only a small measure of success. The plaintiffs want to improve the score. They bring this application to set aside statutory demands that were served by the Bank in respect of a debt for $304,144.88. Applications to set aside demands are generally dealt with by a registrar or master. This particular application raises an interesting point and that is why it has been referred to a judge.
It is necessary to…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2008] FCA 1475
Decision Date: 3 October 2008

CaseChat Overview and Summary

In the case of Eiros Pty Ltd v St George Bank Ltd, the dispute revolved around a claim by the plaintiff, St George Bank Ltd, for payment of a debt owed by the defendant, Eiros Pty Ltd, and several other associated companies. The matter was heard and determined in the Supreme Court of New South Wales. The bank had issued statutory demands to various companies, including Eiros Pty Ltd, requesting payment of the debt. The legal issues before the court involved the validity and amount of the debt claimed and the appropriateness of the statutory demands issued. Specifically, the court had to determine whether the debt claimed was accurate and whether the statutory demands were correctly issued.

The court examined the evidence and submissions from both parties, focusing on the calculation of the debt and the procedural correctness of the statutory demands. The bank argued that the full amount of the debt was due and payable, while Eiros Pty Ltd contended that the debt was overstated. After reviewing the evidence, the court found that the debt claimed was indeed overstated by $14,075.98. Consequently, the court reduced the amount of the debt to $290,068.90. The court also determined that the statutory demands were appropriately issued but ordered that the period for compliance with these demands be extended to 17 October 2008. The court dismissed the bank’s application in all other respects and ordered the bank to pay the defendant's costs.

Orders

Orders of the court

1. The debt claimed in the statutory demands dated 12 June 2008, served by the defendant on Eiros Pty Ltd, Thirteenth Corp Pty Ltd, Apadana Pty Ltd, Shalridge Pty Ltd, Boman Irani Pty Ltd and Combulk Pty Ltd, be reduced by $14,075.98 to $290,068.90.

2. The period for compliance with the statutory demands shall end on 17 October 2008.

3. The plaintiffs’ application is otherwise dismissed.

4. The plaintiffs pay the defendant’s costs to be taxed in default of agreement.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

FINKELSTEIN J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: FINKELSTEIN J

Full text does not contain this section.

IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY	VID 505 of 2008

JUDGE:	FINKELSTEIN J
DATE OF ORDER:	3 OCTOBER 2008
WHERE MADE:	MELBOURNE

BETWEEN:	EIROS PTY LTD, THIRTEENTH CORP PTY LTD, APADANA PTY LTD, SHALRIDGE PTY LTD, BOMAN IRANI PTY LTD and COMBULK PTY LTD Plaintiffs
AND:	ST GEORGE BANK LIMITED Defendant

JUDGE:	FINKELSTEIN J
DATE:	3 OCTOBER 2008
PLACE:	MELBOURNE