Koca and Koca and Anor (SSAT Appeal) (No.2)

This matter concerned an appeal to the Supreme Court of Victoria from a decision of the Victorian Civil and Administrative Tribunal (VCAT). The applicants, Mr and Mrs Koca, sought to appeal a VCAT decision that had dismissed their application to set aside a statutory demand issued by the first respondent, Mr Koca's former business partner, and the second respondent, a company associated with the former business partner.

The primary legal issue before the Court was whether VCAT had erred in law by failing to consider, or adequately consider, the applicants' contention that the statutory demand should be set aside on the grounds that there was a genuine dispute about the existence of the debt. The applicants argued that VCAT had overlooked evidence suggesting that the debt claimed in the statutory demand was subject to a cross-claim or set-off arising from alleged breaches of partnership agreements.

Judge Scarlett found that VCAT had indeed failed to properly address the applicants' arguments regarding a genuine dispute. The Court reasoned that VCAT's decision was based on a misapprehension of the evidence presented, particularly concerning the nature of the financial relationship between the parties and the existence of potential counterclaims. The Court reiterated the principle that where a genuine dispute about the existence of a debt is raised, a statutory demand should not be permitted to stand.

Consequently, the appeal was allowed, and the matter was remitted back to VCAT for redetermination. The Court ordered that the Appellant pay the Second Respondent's costs of the appeal fixed at $4,000, with one month allowed for payment.