Project 88 TPF Pty Ltd v Open Projects Group Pty Ltd

Project 88 TPF Pty Ltd sought relief from a statutory demand issued by Open Projects Group Pty Ltd. The demand, dated 26 November 2019 and served on 28 November 2019, was predicated on an alleged debt of $450,000 stemming from a commercial building contract. The applicant, Project 88, contested the validity of the demand, asserting that there was a genuine dispute over the existence of the debt. This dispute arose from differing accounts of whether a compromise agreement had been reached between the parties.

The central legal issue before the court was whether Project 88 genuinely disputed the debt claimed by Open Projects. The court was required to assess the credibility of the evidence presented by both parties regarding the existence and terms of any alleged compromise agreement. The court also had to determine if Project 88 had a bona fide defence to the statutory demand.

The court found that Project 88 had raised a genuine dispute as to the indebtedness claimed. The evidence presented indicated that there were significant disagreements between the parties regarding the terms and existence of any compromise agreement. The court held that Project 88 had established a sufficient basis to doubt the validity of the debt claimed. Consequently, the statutory demand was set aside. The court scheduled a further hearing to address the issue of costs.