Quarter Enterprises Pty Ltd v Allardyce Lumber Co Ltd

The matter before the court involved a statutory demand made by Quarter Enterprises Pty Ltd against Allardyce Lumber Co Ltd. The demand was based on a judgment debt arising from the registration of a foreign judgment under Part 2 of the Foreign Judgments Act 1991 (Cth). The plaintiffs had applied to have the registration of the foreign judgment set aside, but this application was yet to be determined. The central issue before the court was whether the statutory demand should be set aside, given that there were arguable grounds for setting aside the registration of the judgment and the debt claimed was secured by payment into court or by other means.

The court examined whether the circumstances were analogous to a case where a statutory demand is based on a judgment debt and there is a pending appeal that has not been determined, and no order staying execution of the judgment. The court also considered whether there were other reasons to set aside the demand if the debt claimed was secured by payment into court or by other means. In this case, the court found that there were indeed arguable grounds for setting aside the registration of the judgment and the debt was secured. Consequently, the court set aside the statutory demand on the condition that the plaintiffs pay the sum claimed in the statutory demand into court or otherwise provide an assurance of payment by way of a bank guarantee.

The final orders of the court required the plaintiffs to pay the sum claimed in the statutory demand into court or otherwise provide an assurance of payment by way of a bank guarantee within 21 days. This would allow the plaintiffs to proceed with their application to set aside the registration of the foreign judgment without the immediate threat of enforcement action. The court's decision was grounded in the need to balance the rights of both parties and ensure that justice was served in light of the arguable grounds for setting aside the registration of the judgment and the secured nature of the debt claimed.