Re Renu Waste Pty Ltd

In the case of Re Renu Waste Pty Ltd, the dispute involved the company Renu Waste and its creditor, who had issued a statutory demand under section 459B of the Corporations Act 2001 (Cth). The matter was heard by the Federal Court of Australia, specifically by Justice Bromberg. The creditor sought to recover a debt from Renu Waste, which Renu Waste challenged on the grounds of a genuine dispute, specifically questioning whether the debt was due and payable. This dispute centred around the interpretation of the phrase "due and payable" under section 459E of the Corporations Act 2001 (Cth), and the interaction between sections 459H(1)(a), 459J and section 9AE and section 9AF of the Sale of Land Act 1962 (Vic).

The court had to determine the meaning of "due and payable" in the context of a statutory demand and assess whether the deposit moneys, as defined in section 9AF of the Sale of Land Act 1962 (Vic), included funds paid before the contract was executed. Additionally, the court examined whether an oral agreement could give rise to "equities" that would prevent the exercise of the statutory right to rescind under section 9AE of the Sale of Land Act 1962 (Vic). The court considered the interplay of these provisions to decide whether Renu Waste had a genuine dispute that could justify setting aside the statutory demand.

Justice Bromberg held that the phrase "due and payable" in section 459E of the Corporations Act 2001 (Cth) referred to the time when the debt became due, rather than the moment of payment. The court found that Renu Waste's oral agreement with the creditor did not create sufficient "equities" to preclude the statutory right to rescind under section 9AE of the Sale of Land Act 1962 (Vic). Consequently, the court determined that the statutory demand was valid, and Renu Waste's application to set it aside was dismissed. The creditor was entitled to recover the debt from Renu Waste.