Grace Consulting Pty Ltd v Bourke Constructions Pty Ltd; Grace Consulting Pty Ltd v JLB Projects Pty Ltd

Grace Consulting Pty Ltd sought to wind up Bourke Constructions Pty Ltd and JLB Projects Pty Ltd, based on statutory demands made under the Corporations Act. The respondents challenged the validity of the statutory demands, arguing that the affidavits verifying them were defective. Specifically, the affidavits stated that the creditor "believed" that the debt was due and payable, rather than stating that the deb was due and payable. The respondents argued that this was a mere expression of the deponent's state of mind, rather than a verification of the existence of the debt. The primary issue before the court was whether a defect in the affidavit verifying a statutory demand was fatal to the demand, or whether it constituted a mere defect that could be cured by the court under section 459J of the Corporations Act.

The court held that the defect in the affidavit was a mere defect, and not fatal to the statutory demand. The court noted that the purpose of the verification requirement in section 459A(2) of the Corporations Act was to ensure that the demand was made in good faith and with a reasonable belief that the debt was due and payable. The court held that the use of the word "believed" in the affidavit did not change the fact that the deponent had a reasonable belief that the debt was due and payable. The court also noted that the defect could be cured by the court under section 459J of the Corporations Act, which allows the court to dispense with the verification requirement if it is satisfied that the statutory demand was made in good faith and with a reasonable belief that the debt was due and payable. The court held that the statutory demands were valid, and that Grace Consulting was entitled to wind up the respondents.

The court made orders that the statutory demands were valid, and that Grace Consulting was entitled to wind up the respondents. The court also made orders that the respondents pay Grace Consulting's costs of the application.