In the matter of Pressure Pro Pty Ltd

Pressure Pro Pty Ltd sought to wind up another company, relying on a statutory demand that had been issued. The company against whom the demand was made, however, applied to set the demand aside on several grounds, including the manner in which the affidavit supporting the demand was witnessed and the existence of a genuine dispute about the debt. The Federal Court had to determine the validity of the affidavit and whether the existence of an arbitration clause in the contract between the parties precluded the statutory demand process.

The central issues were whether the affidavit verifying the statutory demand was validly witnessed and if not, whether this invalidated the demand. Additionally, the court had to consider if there was a genuine dispute about the existence or amount of the debt, particularly in light of the arbitration clause in the agreement between the parties. If a genuine dispute existed, the court had to decide whether this justified setting aside the demand.

The court held that the affidavit was validly witnessed despite being taken in a foreign country and witnessed by an Australian legal practitioner via audio-visual means, as it complied with the requirements of the relevant legislation. However, the court found that there was indeed a genuine dispute about the existence or amount of the debt due to the existence of the arbitration clause, which suggested that the parties had intended to resolve such disputes through arbitration rather than statutory demand proceedings. Consequently, the court set aside the statutory demand.

The court ordered that the statutory demand be set aside and that the applicant pay the respondent's costs of the application.