Goman v Scope Data Systems Pty Ltd

The parties to the dispute were Goman, a creditor, and Scope Data Systems Pty Ltd, a debtor. The dispute involved whether the presumption of insolvency raised by a statutory demand was rebutted by the debtor's subsequent payment of the debt after the hearing of Goman's application for winding up the company was contested, and judgment was reserved. The case was heard in the Federal Circuit Court of Australia. The court was required to decide whether the payment of the debt after the contested hearing and the reservation of judgment rebutted the presumption of insolvency raised by the statutory demand. The court also had to determine the appropriate cost order given that after judgment was reserved, one party submitted completely to the demand of the other party.

The court found that the presumption of insolvency was not rebutted by the debtor's payment of the debt after the contested hearing and the reservation of judgment. The court held that the payment of the debt did not occur until after the hearing had concluded and judgment had been reserved, and as such, it did not rebut the presumption of insolvency. The court also considered the appropriate cost order, taking into account that one party had submitted completely to the demand of the other party after judgment was reserved. The court held that the costs of the proceedings should be awarded to the successful party, but that the amount of costs should be reduced to reflect the submission of one party to the other after judgment was reserved. The court ordered that the successful party be awarded costs of the proceedings on an indemnity basis, reduced by 25 per cent to reflect the submission of one party to the other after judgment was reserved.