Free v Dolina Fashion Group Pty Ltd

In the matter of *Free v Dolina Fashion Group Pty Ltd*, the applicant, Ms. Free, sought to wind up the respondent company, Dolina Fashion Group Pty Ltd, on the grounds of insolvency. The application was heard by Justice Vija Zars in the Supreme Court of Victoria.

The central legal issue before the Court was whether Dolina Fashion Group Pty Ltd was unable to pay its debts as they fell due, thereby satisfying the criteria for winding up under the *Corporations Act 2001* (Cth). Ms. Free contended that the company had failed to pay a statutory demand, which, in the absence of evidence to the contrary, was proof of insolvency.

Justice Zars considered the evidence presented by both parties. The Court noted that a failure to comply with a statutory demand, without a genuine dispute regarding the debt, is generally considered evidence of insolvency. In this instance, the Court found that Dolina Fashion Group Pty Ltd had not established a genuine dispute concerning the debt owed to Ms. Free, nor had it demonstrated its ability to pay the debt. The Court applied the principles of corporate insolvency law, focusing on the company's inability to meet its financial obligations.

Consequently, the Court ordered that Dolina Fashion Group Pty Ltd be wound up.