In the matter of Riva NSW Pty Limited

The matter before the Court was an application by Riva NSW Pty Limited to set aside a creditor’s statutory demand made by another party. The application was made under the Corporations Act 2001 (Cth), specifically section 459G. The crux of the dispute was whether there existed a genuine dispute regarding the existence or amount of the debt claimed. The Court was asked to determine if the statutory demand should be set aside or varied to reflect any changes in the amount owed.

The central legal issue was whether the statutory demand could be set aside or varied due to the settlement of review proceedings before the NSW Civil and Administrative Tribunal, which reduced the applicant’s indebtedness. The Court examined the grounds for the application and the statutory provisions that confine these grounds to those specifically outlined in section 459G of the Corporations Act. The applicant argued that the settlement in the tribunal proceedings constituted a genuine dispute regarding the amount of the debt, warranting either a variation or a setting aside of the demand.

In its decision, the Court found that the statutory demand could be varied to reflect the reduced indebtedness resulting from the tribunal’s settlement. The Court held that the settlement constituted a genuine dispute regarding the amount of the debt, and thus, the statutory demand should be adjusted accordingly. The Court emphasised that the grounds for setting aside or varying a statutory demand under section 459G are strictly limited and must align with the provisions of the statute. The Court concluded that the settlement of the tribunal proceedings provided a sufficient basis for varying the demand to reflect the reduced amount owed.

The Court ordered that the statutory demand be varied to reflect the reduced indebtedness as determined by the tribunal’s settlement. This decision underscored the importance of strictly adhering to the statutory grounds for challenging a creditor’s statutory demand and the limited scope for setting aside or varying such demands based on the specific circumstances of each case.