Jargon Pty Ltd v Good Earth Garden Products Pty Ltd

Jargon Pty Ltd sought to enforce a judgment debt against Good Earth Garden Products Pty Ltd by issuing a statutory demand. Good Earth sought to set aside the demand, arguing that the creditor's address was incorrect and that the amount claimed was less than the judgment debt. The case was heard in the Federal Circuit Court of Australia.

The primary legal issues were whether the error in the address for service warranted setting aside the statutory demand and whether the demand must be accompanied by a verifying affidavit when the amount claimed is less than the actual judgment debt. The court also considered whether there was a genuine dispute as to the debt.

The court found that the error in the creditor's address did not warrant setting aside the statutory demand because Good Earth was aware of the correct address and the demand was served at that address. The court relied on the principle that theoretical possibilities of depriving the debtor of a right or opportunity are not sufficient to render the demand ineffective if there is a contrary fact. The court also held that the difference between the amount of the judgment debt and the amount claimed did not mean that a verifying affidavit had to be served with the statutory demand. The court emphasised that the amount claimed was less than the judgment debt and that no substantial injustice would result from not setting aside the demand. The court also noted that there was no genuine dispute as to the amount claimed, as it was the subject of an existing judgment.

The court dismissed Good Earth's application to set aside the statutory demand and ordered Good Earth to pay Jargon's costs of the application.