In the matter of Universal Property Group Pty Limited

Universal Property Group Pty Limited sought to set aside a statutory demand issued by a creditor. The creditor claimed that Universal Property owed fees for an option to purchase land. The dispute was heard in the Federal Circuit Court of Australia. The primary legal issue was whether there was a genuine dispute justifying the setting aside of the statutory demand. This hinged on the interpretation of the deed that granted the option to purchase land and the fees associated with it.

The court had to determine whether the dispute over the interpretation of the deed was genuine and sufficient to warrant setting aside the statutory demand. The court noted that the threshold for establishing a genuine dispute was low and that the primary focus was on whether there was a real prospect of success in the defence to the demand. The court found that the interpretation of the deed was genuinely disputed, as there were differing views on whether the fees were payable under the circumstances described. The court considered it appropriate to determine the proper construction of the contract at this stage, given the straightforward nature of the dispute.

The court set aside the statutory demand, finding that there was a genuine dispute over the interpretation of the deed and the associated fees. This decision underscores the importance of thoroughly examining the terms of contracts and the potential for genuine disputes to warrant setting aside statutory demands. The court did not make any further orders beyond setting aside the demand.