P J McCarthy and Sons Pty Ltd v QPaint Pty Ltd

P J McCarthy and Sons Pty Ltd applied to set aside a statutory demand issued by QPaint Pty Ltd, pursuant to section 459G(1) of the Corporations Act 2001 (Cth). The applicant contended that it was not the contracting party with the respondent and therefore not liable for the debt claimed. QPaint objected to the application on various grounds, including the lack of credibility of the applicant's evidence and the absence of a genuine dispute as to the debt. The court was required to determine whether the application to set aside the statutory demand should be allowed, focusing on whether the applicant had established a genuine dispute as to the indebtedness.

The court assessed the evidence presented by the applicant, including affidavits and documents, to determine the genuineness of the dispute. It considered whether the applicant had discharged the onus of proving a genuine dispute as to the indebtedness. The court found that the applicant had established a genuine dispute by demonstrating that it was not the contracting party with the respondent, and therefore not liable for the debt claimed. The court also found that the applicant had acted promptly in making the application to set aside the statutory demand, and that the respondent had not suffered any prejudice as a result of the delay.

Based on the findings, the court set aside the statutory demand issued by QPaint. The court ordered that the respondent pay the applicant's costs of and incidental to this application to be assessed on a standard basis. The decision highlights the importance of establishing a genuine dispute as to indebtedness when applying to set aside a statutory demand, and the need for prompt action in making such an application.