Micha International Pty Limited v Jong Seol Lee

Micha International Pty Limited brought an action against Jong Seol Lee, seeking payment of a debt. The matter came before the Federal Circuit Court, which was asked to determine whether a statutory demand issued by Micha International could be set aside. The plaintiff, Micha International, had issued a statutory demand under section 459C of the Corporations Act 2001 (Cth), asserting that a debt was owed by Lee. Lee responded by filing an application under section 459G of the Act to set aside the statutory demand, contending that there was a genuine dispute regarding the existence or quantum of the debt. The court was required to determine whether there was a genuine dispute and if Lee had provided sufficient evidence to establish such a dispute.

The court examined the evidence presented by Lee to determine if it was sufficient to establish a genuine dispute as to the existence or quantum of the debt. The court considered whether Lee had demonstrated a serious question to be tried and whether the evidence was capable of substantiating a defence to the statutory demand. The court found that Lee had provided sufficient evidence to establish a genuine dispute, as the evidence presented a serious question to be tried regarding the existence of the debt claimed. The court determined that the evidence was capable of substantiating a defence to the statutory demand, and accordingly, the application to set aside the statutory demand was successful.

The court set aside the statutory demand issued by Micha International and ordered that the matter proceed to trial. The court's decision hinged on the sufficiency of the evidence presented by Lee to demonstrate a genuine dispute regarding the debt. By finding that Lee had provided sufficient evidence, the court concluded that the statutory demand could not stand, and the matter would proceed to a full hearing to determine the merits of the claim. This outcome underscores the importance of providing robust evidence to challenge a statutory demand and the potential consequences of failing to do so.