Kay Investment Holdings Pty Ltd v North East Developments Pty Ltd (in liq)

The applicants, Kay Investment Holdings Pty Ltd, sought to stay the hearing of their application to set aside a statutory demand issued by North East Developments Pty Ltd. The application was filed by North East Developments, which was in liquidation. The applicants sought to stay the hearing pending their application for leave to appeal an interlocutory order. The applicants also sought to set aside the statutory demand on the basis that it was defective and that there was a genuine dispute or off-setting claim. The applicants argued that the statutory demand was defective because it did not comply with the requirements of section 459E(2) of the Corporations Act 2001. The applicants further argued that there was a genuine dispute or off-setting claim because they had a counterclaim against North East Developments for breach of contract.

The court was required to decide whether to exercise its discretion to grant a stay of the hearing of the application to set aside the statutory demand and whether the statutory demand was defective and whether there was a genuine dispute or off-setting claim. The court held that it would not exercise its discretion to grant a stay of the hearing of the application to set aside the statutory demand. The court held that the statutory demand was defective because it did not comply with the requirements of section 459E(2) of the Corporations Act 2001. The court held that there was a genuine dispute or off-setting claim because the applicants had a counterclaim against North East Developments for breach of contract. The court set aside the statutory demand.

The court ordered that the statutory demand issued by North East Developments be set aside and that the applicants' application to set aside the statutory demand be heard on its merits. The court also ordered that the applicants pay North East Developments' costs of the application for stay of hearing.