Hung and Anor v Anthony John Warner and Steven Kugel in their Capacities as Joint & Several Liquidators of Bellpac Pty Ltd (Receivers & Managers Appointed) (in Liquidation)

The applicants, Hung and Anor, sought to set aside a statutory demand issued by the respondents, Anthony John Warner and Steven Kugel, in their capacities as joint and several liquidators of Bellpac Pty Ltd (Receivers & Managers Appointed) (in Liquidation). The dispute concerned whether the applicants had a genuine dispute about the existence of the debt claimed in the statutory demand. The matter was heard by the High Court of Australia.

The primary legal issue before the High Court was whether the applicants had established a "genuine dispute" for the purposes of setting aside the statutory demand under the Corporations Act 2001 (Cth). This required the court to consider the nature of the applicants' alleged counterclaims and whether they were so lacking in substance or so devoid of merit as to be incapable of being the subject of a genuine dispute.

The High Court, in a joint judgment, held that the applicants had failed to demonstrate a genuine dispute. Their alleged counterclaims were found to be speculative and lacking in sufficient particularity to raise a real question as to the existence of the debt. The court reiterated the principle that for a dispute to be genuine, it must have a real prospect of success and not be merely a pretence or a sham. The applicants' claims were not of a character that could be the subject of a genuine dispute, as they were not substantiated by evidence or legal argument that could withstand scrutiny.

The High Court dismissed the application to set aside the statutory demand.