Newsnet Pty Ltd v Patching

Newsnet Pty Ltd sought to set aside a statutory demand served by Patching. Patching applied to summarily dismiss the application. The Federal Court considered whether the application to set aside was validly served within the 21-day period stipulated by section 459G of the Corporations Act 2001. The court also assessed whether the supporting affidavit met the minimum requirements.

The court found that the application to set aside a statutory demand and the supporting affidavit could be served at the address for service stated in the demand. It ruled that service at the address for service is effective regardless of whether it is received by a person. In this case, service by facsimile was effective on the day it was received and printed at the office of the address for service. The court further examined whether the supporting affidavits met the minimum requirements as per the Graywinter principle. The court noted that the supporting affidavits contained sufficient details to justify setting aside the statutory demand. Additionally, the court observed on the undesirability of a party applying for summary dismissal of an application under section 459G. The court ultimately determined that Patching's application to summarily dismiss the application to set aside was not well-founded. The court dismissed Patching's application and allowed Newsnet's application to set aside the statutory demand.