Malik Investments Pty Ltd v ICA Group Pty Ltd

The case of Malik Investments Pty Ltd versus ICA Group Pty Ltd involves a dispute concerning a statutory demand for payment of a debt. The matter was heard in the Supreme Court of New South Wales. Malik Investments sought to wind up ICA Group for insolvency, specifically due to ICA Group's failure to comply with a statutory demand. ICA Group applied for leave to defend the winding-up application, arguing that they had a substantial defence and were solvent. The court needed to determine whether ICA Group's application for leave to defend was valid and if they could rely on the dispute concerning the debt in the statutory demand as their defence.

The court examined whether ICA Group's application for leave to defend was appropriate, given that it was based on solvency rather than a substantial defence. It further considered whether ICA Group could rely on the dispute about the debt as its defence. The court noted that the application for leave to defend was not necessary because ICA Group's solvency was not in question, and it was too late to rely on a dispute about the debt. The only evidence of solvency presented was the uncorroborated statement of a director, which was insufficient to discharge ICA Group's onus.

Consequently, the court found that ICA Group's application for leave to defend was invalid, and the dispute concerning the debt could not be used as a defence. The court held that ICA Group's onus to prove solvency had not been discharged. The final orders were made in favour of Malik Investments, leading to the winding up of ICA Group due to insolvency.