Re Selskar Pty Ltd

This matter concerned an application by Selskar Pty Ltd (the applicant) for the winding up of a company, the respondent, on the grounds of insolvency. The applicant sought the appointment of a liquidator to wind up the respondent's affairs.

The primary legal issue before the Court was whether the respondent was unable to pay its debts as they fell due, thereby establishing the ground for winding up under the Corporations Act 2001 (Cth). The applicant contended that the respondent had failed to satisfy a statutory demand, which, in the absence of evidence to the contrary, was proof of insolvency.

The Court considered the evidence presented by both parties. It noted that the respondent had not satisfied the statutory demand within the prescribed period and had not demonstrated that it had any reasonable prospect of paying the debt. Applying the principles established in relevant case law concerning statutory demands and the test for insolvency, the Court found that the applicant had discharged its onus of proof.

The Court ordered that the respondent be wound up in insolvency and appointed a liquidator to administer the winding up.