Greenway Hotel Pty Ltd v Parton

The appeal concerned an application by Greenway Hotel Pty Ltd (the appellant) to set aside a statutory demand for payment of debt made by Ms Parton (the respondent). The matter came before the Full Court of the Supreme Court of Victoria.

The primary legal issue before the Full Court was whether the appellant had demonstrated a "genuine dispute" regarding the existence of the debt, which is the threshold requirement for setting aside a statutory demand under the Corporations Act 2001 (Cth). Relatedly, the Court considered whether the affidavit filed in support of the application sufficiently articulated the grounds for setting aside the demand and the principles governing the tender of further affidavit material in such applications.

The Full Court allowed the appeal, finding that the judge below had erred in dismissing the appellant's application to set aside the statutory demand. The Court held that the affidavit evidence, when properly considered, did disclose a genuine dispute as to the existence of the debt. The Court also addressed the admissibility of further affidavit material, indicating that such material could be considered in certain circumstances to clarify or supplement existing grounds, rather than introducing entirely new ones.

Consequently, the orders of the judge below were set aside, and the appellant's application to set aside the statutory demand was allowed. The Court ordered that there be no costs of the application before the judge below, but the respondent was ordered to pay the appellant's costs of the appeal.