Evans & Tate Premium Wines Pty Ltd v Australian Beverage Distributors Pty Ltd

Evans & Tate Premium Wines Pty Ltd sued Australian Beverage Distributors Pty Ltd for winding up due to non-payment of a debt, which triggered a statutory demand. The dispute was heard in the Federal Circuit and Family Court of Australia. The central legal issue was whether the defendant had discharged its onus of proving solvency to counter the statutory demand, and what standard of proof was required in such cases. Additionally, the court examined whether the plaintiff could rely on the 'just and equitable' ground for winding up without having previously notified the defendant of this ground and the supporting facts.

The court held that the defendant bore the onus of proving solvency, and this burden was to be discharged on the balance of probabilities. The court emphasised that this standard of proof was consistent with other provisions in the Corporations Act 2001 (Cth) and previous case law. Furthermore, the court found that the plaintiff could rely on the 'just and equitable' ground for winding up, even if the defendant had not been previously notified of this ground and the circumstances supporting it. The court reasoned that there was no requirement in the relevant legislation or case law for prior notification of the just and equitable ground.

Consequently, the court found that the defendant had not discharged its onus of proving solvency, and that the plaintiff could rely on the just and equitable ground. The court ordered that Australian Beverage Distributors Pty Ltd be wound up. The court also ordered that the costs of the application be paid by the defendant.