Re: Rock Bottom Fashion Market P/L

This is an application to wind up Rock Bottom Fashion Market Pty Ltd ("Rock Bottom"). The applicant, H R and C E Griffiths Pty Ltd is the former landlord of Rock Bottom. On 16 January 1997 in proceedings before Williams J. it obtained a judgment against Rock Bottom for $3,472.70 and for costs to be taxed. A statutory demand was promptly served for the $3,472.70. Rock Bottom failed to satisfy the demand within the 21 days or at all. On 13 February 1997 it caused a notice of appeal to be lodged in respect of the judgment. No application was brought to set aside the notice of demand. There has been no attempt to pay or secure the debt.

The main issues which have been argued are whether the application has been duly served, and whether the company is insolvent. The court found that the application has been duly served both by post to the registered office of the company and by facsimile to the fax number of the sole director at the address of the company's place of business. It also found that the company is insolvent. The court found that although the company had filed an appeal against the judgment upon which the statutory demand was based, there was no sufficient reason for adjourning or staying the present winding up proceedings. The court also found that although the application was advertised in the newspaper one day earlier than permitted by the Corporations (Queensland) Rules, this did not amount to an abuse of process or cause substantial injustice. The court made an order as per the draft submitted, with the addition of a declaration that the advertising was not invalid by reason of the contravention of rule 56.