Legal Research
Cases
Midas Management Pty Ltd v Equator Communications Pty Ltd

Midas Management Pty Ltd v Equator Communications Pty Ltd

Link copied

Case Copied 12 July 2007 12 min read

Contents

On this page

Reported Decision:
(2007) 25 ACLC 1,038

New South Wales

Supreme Court

CITATION: Midas v Equator [2007] NSWSC 759
This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S): 2nd, 3rd, 4th, 12th July 2007

JUDGMENT OF: Hammerschlag J

EX TEMPORE JUDGMENT DATE: 12 July 2007

DECISION: Payment into Court of the amount of the judgment debt the subject of the demand, plus interest, having been made by the recipient of the statutory demand, the demand is set aside

CATCHWORDS: CORPORATIONS - statutory demand - judgment debt - reasonable and arguable appeal on foot - condition imposed that amount of debt be paid into Court - "some other reason why the demand should be set aside" under s 459J(1)(b) Corporations Act 2001(Cth)

LEGISLATION CITED: Corporations Act 2001 (Cth)

CASES CITED: Barclays Australia (Finance) Limited v Mike Gaffikin Marine Pty Limited (1996) 21 ACSR 235
Ketrim Pty Limited v AS&L Pty Limited (2005) 52 ACSR 252
Eumina Investments Pty Limited v Westpac Banking Corporation (1998) 84 FCR 454
Natcraft Pty Limited v WIN Television Pty Limited [2003] 1 Qd R 196
Meehan v Glazier Holdings Pty Limited (2005) 53 ACSR 229
Sajepe Pty Limited v Lawler [2000] NSWSC 262
Fraser Henleins Pty Limited v Cody (1945) 70 CLR 100. Kirkstall Brewery Co v Furness Railway Co (1874) LR 9 QB 468

PARTIES: Midas Management Pty Ltd ACN 067 519 911
Equator Communications Pty Ltd ACN 082 576 976

FILE NUMBER(S): SC 02901/2007

COUNSEL: R. N. Winfield 2nd & 3rd July (Plaintiff)
P. A. Hill 4th & 12th July (Plaintiff)
A.D. Crossland 2nd, 3rd & 4th July (Defendant)
J. O'Connor 12th July (Defendant)

SOLICITORS: Griffin Lawyers (Plaintiff)
Robinson Legal (Defendant)

- 9 -

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
CORPORATIONS LIST

HAMMERSCHLAG J

12 JULY 2007

ACN 082 576 976

EX TEMPORE JUDGMENT

1 HIS HONOUR: This is an application by the plaintiff (“Midas”) under s 459G of the Corporations Act 2001 (Cth) to set aside a statutory demand dated 7 May 2007 made on it by the defendant (“Equator”).

2 On 5 February 2007 in the Local Court at Sydney Magistrate Dillon gave judgment in proceedings instituted by Equator against Midas and one Anthony Mead. The learned Magistrate brought down a verdict in favour of Equator against Midas for $35,507.01 plus interest to be calculated from 14 June 2005. This is the debt of which the statutory demand requires payment.

3 Equator had earlier obtained default judgment against Mr Mead, which judgment was set aside when judgment against Midas was given.

4 The proceedings in the Local Court were commenced by ordinary statement of claim dated 15 November 2005. Midas pleaded to it in an amended defence dated 2 March 2006. The cause of action was an agreement between them made in April 2005, under which (it was alleged) Equator agreed to provide advertising services to Midas for which it agreed to pay. The agreement…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Keep reading for free

Create a free CaseChat account to read Midas Management Pty Ltd v Equator Communications Pty Ltd and more:

Read every judgment in full
Ask AI and get answers linked to paragraphs
See how each paragraph was cited in later cases
Download judgments as PDF or Word

Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details

Case: [2007] NSWSC 759
Decision Date: 12 July 2007

CaseChat Overview and Summary

Midas Management Pty Ltd sought to set aside a statutory demand issued by Equator Communications Pty Ltd. The dispute was heard and determined in the Federal Circuit Court of Australia. The crux of the matter was whether the statutory demand should be set aside, considering the circumstances under which it was issued and whether there were grounds for an appeal against the judgment.

The central legal issues revolved around the criteria set out in section 459J(1)(b) of the Corporations Act 2001, which permits a statutory demand to be set aside if there is some other reason why the demand should be set aside. Midas argued that there were grounds for setting aside the statutory demand due to a reasonable and arguable appeal on foot and sought to impose a condition that the amount of the debt be paid into court.

The Court found that the statutory demand was issued without proper consideration of the respondent's potential defences and that there were indeed grounds for a reasonable and arguable appeal on foot. Consequently, the Court concluded that it was appropriate to set aside the statutory demand. The Court also imposed a condition that the amount of the debt be paid into Court pending the resolution of the appeal, ensuring that the creditor's rights were protected while the merits of the appeal were determined.

The final orders of the Court were that the statutory demand issued by Equator Communications Pty Ltd be set aside, and the amount of the debt be paid into Court pending the resolution of any appeal.

Orders