Re Ad-A-Cab Holdings Pty Ltd

This case involves an application by Ad-A-Cab Holdings Pty Ltd to set aside a statutory demand issued by Westlawn Investment Company Limited under the Corporations Law. Ad-A-Cab Holdings Pty Ltd markets illuminated advertising signs on taxis and had entered into agreements with Westlawn for the factoring of debts and leasing finance facilities. The statutory demand sought payment of various debts, including those related to an advertising unit leased to a taxi operator named Overs. The primary legal issue before the court was whether the statutory demand should be set aside under section 459J of the Corporations Law due to defects in the demand or whether there existed a genuine dispute or offsetting claim that warranted setting aside the demand. The court considered whether the failure to specify an address for service in Queensland constituted a defect that warranted setting aside the demand, but concluded that it did not cause substantial injustice. The court also assessed whether the applicant had a genuine dispute or offsetting claim regarding the basis for calculating the sum in the demand, and found that there was no genuine dispute or offsetting claim. Finally, the court considered whether the demand should be set aside due to the inaccuracy in the amount claimed for the Overs agreement, but found that the inaccuracy was not of such a nature that it warranted setting aside the demand. The court varied the demand to reflect the correct amounts owing and declared the demand, as so varied, to have had effect from when the demand was served on the applicant. The application to set aside the demand was refused with costs.