Malec Holdings Pty Ltd v Scotts Agencies Pty Ltd (in liq)

The case of Malec Holdings Pty Ltd v Scotts Agencies Pty Ltd (in liq) involved a dispute over a statutory demand issued under the Corporations Act 2001. Malec Holdings sought to set aside the statutory demand, claiming genuine disputes and an offsetting claim. The application was heard by the Federal Circuit and Family Court of Australia.

The primary legal issues before the Court were whether Malec Holdings had established genuine disputes as required by section 459G of the Corporations Act, and whether the offsetting claim could be recognised. A significant point was whether Malec Holdings was permitted to raise a new claim in their affidavit, which was outside the prescribed 21-day period and different from the initial claim. Additionally, the Court needed to determine if the affidavit was properly sworn by a representative who had dealings with the defendant and admitted the debt.

The Court found that Malec Holdings could not raise a new claim in their affidavit as it was outside the 21-day period and differed from the initial claim. Furthermore, the affidavit was not properly sworn by a representative who had admitted the debt. Despite the deductions made for the established offsetting claim, the Court concluded that the remaining evidence was sufficient to rebut the claims of genuine disputes. Consequently, the Court held that Malec Holdings had failed to discharge the onus of proving genuine disputes, and the statutory demand was varied to deduct the established offsetting claim. The demand was declared effective for the remaining balance.

The Court ordered the demand to be varied by deducting the established offsetting claim and declared it effective for the balance. The decision underscored the importance of adhering to the statutory timeframes and the need for proper affidavits to substantiate claims.