G Developments Pty Ltd & Anor v John Allen (as trustee of the Bundamba Trust) & Ors

The proceeding concerned an appeal to the High Court of Australia from a decision of the Full Federal Court. The appellants, G Developments Pty Ltd and another, sought to challenge the validity of certain notices issued by the respondents, John Allen (as trustee of the Bundamba Trust) and others, under section 104 of the *Corporations Act 2001* (Cth). These notices purported to require the appellants to pay certain amounts to the respondents, which the appellants contended were not debts due and payable.

The central legal issue before the High Court was whether the notices issued under section 104 of the *Corporations Act* were valid, given the appellants' contention that the amounts claimed were not presently due and payable debts. This involved an examination of the nature of the alleged debts and whether they met the threshold requirements for the issuance of such statutory notices.

Bell and Gageler JJ held that the notices were invalid. Their Honours reasoned that a notice under section 104 of the *Corporations Act* can only be issued in respect of a debt that is presently due and payable. In this instance, the amounts claimed by the respondents were found not to be presently due and payable, as they were contingent on the outcome of other proceedings. Consequently, the statutory preconditions for the issuance of the notices were not met. The appeal was allowed, and the orders of the Full Federal Court were set aside.