In the matter of Drama Unit Pty Limited

In the matter of Drama Unit Pty Limited, the respondent sought to set aside a statutory demand issued by the applicant. The statutory demand was for an amount owed under a contract. The case was heard in the Federal Circuit and Family Court of Australia. The primary issue for the court was whether the respondent's affidavit in support of the application to set aside the statutory demand complied with the statutory requirements under section 459G of the Corporations Act 2001. Specifically, the court needed to determine whether the affidavit provided sufficient evidence to support the respondent’s claim of an offsetting debt and whether it was made on personal knowledge or information and belief, and if the latter, whether it met the necessary standards.

The court examined the respondent's affidavit, which was based on information and belief rather than personal knowledge and was not verified. The affidavit was merely annexed to an unsigned, unverified, and unfiled statement of claim, and it contained a bare assertion that the quantum of the respondent's claim would exceed the debt in question. The court held that the affidavit did not meet the statutory description under section 459G because it was not made on personal knowledge and was not verified. The court also found that there was no possibility to supplement the affidavit by further evidence, as the information was from an unnamed source and the affidavit itself was not properly verified or filed. As a result, the application to set aside the statutory demand was dismissed.

In conclusion, the court dismissed the respondent’s application to set aside the statutory demand due to the deficiencies in the affidavit provided. The court emphasised the importance of strict compliance with the statutory requirements, particularly regarding the nature and verification of the affidavit. The dismissal of the application means that the statutory demand remains in force, and the respondent is liable for the amount claimed by the applicant unless the respondent takes further action in accordance with the law.