Infratel Networks Pty Ltd v Gundry's Telco & Rigging Pty Ltd

Infratel Networks Pty Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge who had refused to set aside a statutory demand issued by Gundry's Telco & Rigging Pty Ltd. The core of the dispute concerned whether there was a "genuine dispute" about the existence or amount of the debt claimed in the statutory demand, as required by the *Corporations Act 2001* (Cth).

The Court of Appeal was required to determine whether the primary judge erred in finding that Infratel Networks Pty Ltd had failed to demonstrate a genuine dispute sufficient to warrant setting aside the statutory demand. This involved considering the adequacy of the supporting affidavit material provided by Infratel Networks Pty Ltd and applying the principles established in cases such as *Graywater Pty Ltd v G J Kolm Pty Ltd*.

The Court applied the *Graywater* principle, which requires that an applicant seeking to set aside a statutory demand must provide sufficient material to show a plausible case of a genuine dispute. In this instance, the Court found that the affidavit material filed by Infratel Networks Pty Ltd was insufficient to establish a plausible case that a genuine dispute existed regarding the debt. Consequently, the appeal was dismissed. The Court granted leave to appeal, allowed the amended draft Notice of Appeal to stand, dismissed the appeal with costs, and extended the time for compliance with the statutory demand by 14 days from the delivery of the reasons.