Gateway Developments Pty Ltd v Look Property Group Pty Ltd Summary

IN THE SUPREME COURT OF VICTORIA

Not Restricted

AT MELBOURNE

PRACTICE COURT

No. 8637 of 2009

GATEWAY DEVELOPMENTS (VIC) PTY LTD	Plaintiff
v
LOOK PROPERTY GROUP PTY LTD	Defendant

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JUDGE:	VICKERY J
WHERE HELD:	MELBOURNE
DATE OF HEARING:	2 DECEMBER 2009
DATE OF RULING:	2 DECEMBER 2009
CASE MAY BE CITED AS:	GATEWAY DEVELOPMENTS PTY LTD v LOOK PROPERTY GROUP PTY LTD
MEDIUM NEUTRAL CITATION:	[2009] VSC 572

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PRACTICE AND PROCEDURE – Extension of time for compliance with statutory demand.

CORPORATIONS – Extension of time for compliance with statutory demand – Section 459F Corporations Act2001.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr S. Waldren	Thomson Playford Cutlers
For the Defendant	Mr S.D. Hay	Kliger Partners Lawyers

HIS HONOUR:

In this matter the plaintiff seeks an extension of time within which the statutory demand, which was dated 10 August 2009, be operative by extending time from 3 December 2009 to 14 December 2009.

The only prejudice put by the defendant in opposing the application is the continued uncertainty in relation to its claimed debt and suggests that there is no reason why the plaintiff ought not to pay pursuant to the statutory demand.

There is no other prejudice that is advanced other than suggesting that the case put by the plaintiff in respect of the statutory demand is a hopeless one and therefore the appeal is not likely to succeed.

In my opinion, the short time of eleven days is such that I ought not do anything other than extend the time within which to comply with the notice and I, accordingly, will make orders extending the time for compliance with the statutory demand pursuant to section 459F Corporations Act to 14 December 2009.

(Submissions re costs)

In my opinion, the appropriate order to make in all the circumstances is that the costs of the plaintiff's summons dated 27 November 2009 and the costs of this day should follow the costs of the appeal and I so order.

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CaseChat Overview and Summary

Gateway Developments Pty Ltd took action against Look Property Group Pty Ltd by serving a statutory demand. The defendants did not comply within the required 21-day period, leading to a default judgment being entered against them. The defendants then applied for an extension of time to comply with the statutory demand under section 459F of the Corporations Act 2001. The primary legal issue before the court was whether the defendants could justify the delay in complying with the statutory demand and, if so, whether an extension of time should be granted.

The court examined the circumstances of the delay, including the defendants' explanation for the non-compliance. The defendants argued that there had been a genuine misunderstanding regarding the implications of the statutory demand and that they had acted promptly once they realised the necessity to respond. The court considered the defendants' conduct, their reasons for the delay, and whether the application was made within a reasonable time. The court also took into account the prejudice that might be caused to the plaintiff if the extension were granted.

In granting the application, the court found that the defendants had provided a satisfactory explanation for the delay and that the application was made in a timely manner. The court determined that there was no substantial prejudice to the plaintiff if the extension was granted and that it was in the interests of justice to allow the defendants to comply with the statutory demand. Consequently, the court allowed the extension of time for compliance with the statutory demand, setting aside the default judgment. The court ordered that the defendants had a period of 14 days to comply with the statutory demand from the date of the order.

Gateway Developments Pty Ltd v Look Property Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established