In the matter of Maize Enterprises Pty Ltd

Maize Enterprises Pty Ltd sought to have the statutory demand served on them by another party set aside and to have the costs of the application paid on an indemnity basis. The dispute centred on whether the statutory demand was an abuse of process and whether, as a result, the costs of the application should be paid on an indemnity basis. The primary issue before the court was whether the statutory demand was an abuse of process and, if so, whether this warranted an order for costs on an indemnity basis.

The court considered the nature of the statutory demand and whether it constituted an abuse of process. An abuse of process was determined to occur when the statutory demand was made with no reasonable prospect of success or for an improper purpose. The court found that while there was a genuine dispute about the debt, the demand was not made for an improper purpose. Consequently, the demand was not an abuse of process. Given this finding, the court held that it was inappropriate to order costs on an indemnity basis. Instead, the applicant’s costs should be assessed on the standard basis and paid by the respondent. Additionally, the parties consented to the statutory demand being set aside.