Marine v Kinsley

Marine Pty Ltd applied to set aside a statutory demand issued by Kinsley in accordance with section 459G of the Corporations Act 2001 (Cth). The dispute arose from a commercial transaction where Marine was alleged to owe Kinsley a debt of approximately $500,000. Marine contested the validity of the debt and sought to have the statutory demand set aside on the basis that there was a genuine dispute over the amount owed. The case was heard by the Federal Circuit and Family Court of Australia.

The primary legal issue for the court was whether there was a genuine dispute over the amount of the debt claimed by Kinsley, which would justify setting aside the statutory demand. Marine argued that the debt was disputed on the grounds that the invoice issued by Kinsley was incorrect and that Marine had already paid a portion of the amount claimed. The court had to determine if there was sufficient evidence to establish a genuine dispute over the debt and if Marine had a reasonable prospect of fully defending the claim.

The court found that Marine had presented a credible dispute over the amount of the debt and that there was a reasonable prospect of successfully defending the claim. The court noted that Marine had provided evidence that contradicted Kinsley's claim and had demonstrated that the amount claimed was not undisputed. The court concluded that the statutory demand should be set aside as Marine had met the requirements under section 459G of the Corporations Act.

The court set aside the statutory demand issued by Kinsley and ordered that the demand be disregarded. The court found no matter of principle that would prevent the setting aside of the demand and ruled in favour of Marine.