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Re UGL Process Solutions Pty Ltd

Re UGL Process Solutions Pty Ltd

Case [2012] NSWSC 1256 18 October 2012

Winding Up & Liquidation

Statutory Interpretation

Limitation Periods

Corporate Law & Governance

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Supreme Court

New South Wales

Medium Neutral Citation: In the matter of UGL Process Solutions Pty Ltd [2012] NSWSC 1256
Hearing dates: 21 September 2012
Decision date: 18 October 2012
Jurisdiction: Equity Division - Corporations List
Before: Black J
Decision:
Defendant's statutory demand dated 12 July 2012 set aside. Defendant to pay Plaintiff's costs, as agreed or as assessed.

Catchwords: CORPORATIONS - Winding up - Statutory demand - Application to set aside statutory demand - Whether genuine dispute established - Whether there is some other reason to set aside statutory demand - Whether defect in statutory demand which would give rise to substantial injustice - Whether there has been proper use of statutory regime.
Legislation Cited: - Corporations Act 2001 (Cth) Pt 5.4, ss 459G, 459H, 459H(1)(a), 459H(2), 459H(3), 459H(4), 459J, 459J(1)(a), 459J(1)(b)
Cases Cited: - Arcade Badge Embroidery Co Pty Ltd v Deputy Commissioner of Taxation [2005] ACTCA 3; (2005) 157 ACTR 22
- Australian Broadcasting Commission v Australasian Performing Right Association Ltd [1973] HCA 36; (1973) 129 CLR 99
- Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540
- Central City Pty Ltd v Montevento Holdings Pty Ltd [2011] WASCA 5
- Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporisers Pty Ltd (1994) 13 ACSR 37
- CP York Holdings Pty Ltd v Food Improvers Pty Ltd [2009] NSWSC 409
- Edge Technology Pty Ltd v Lite-On Technology Corporation [2000] NSWSC 471; (2000) 34 ACSR 301
- Energy Equity Corp Ltd v Sinedie Pty Ltd [2001] WASCA 419; (2001) 166 FLR 179
- Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785
- First State Computing Pty Ltd v Kyling (1995) 13 ACLC 939
- Graywinter Properties Pty Ltd v Gas & Fuel Corp Superannuation Fund (1996) 70 FCR 452; 21 ACSR 581
- Hansmar Investments Holdings Pty Ltd v Perpetual Trustee Co Ltd [2007] NSWSC 103; (2007) 61 ACSR 321; 25 ACLC 282
- John Holland Construction and Engineering Pty Ltd v Kilpatrick Green Pty Ltd (1994) 14 ACSR 250
- Kay Investment Holdings Pty Ltd v North East Developments Pty Ltd (in liq) [2011] NSWSC 1121; (2011) 85 ACSR 610
- King Furniture Australia Pty Ltd v Higgs [2011] NSWSC 234
- Meehan v Glazier Holdings Pty Ltd [2005] NSWCA 24; (2005) 53 ACSR 229
- Mibor Investments Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 290; (1993) 11 ACSR 362
- Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; (2004) 218 CLR 451
- Panel Tech Industries (Australia) Pty Ltd v Australian Skyreach Equipment Pty Ltd (No 2) [2003] NSWSC 896
- Portrait Express (Sales) Pty Ltd v Kodak (Australasia) Pty Ltd (1996) 20 ACSR 746
- POS Media Online Ltd v B Family Pty Ltd [2003] NSWSC 147; (2003) 21 ACLC 533
- Re 2 Roslyn Street Pty Ltd [2011] NSWSC 512
- Re Morris Catering (Australia) Pty Ltd (1993) 11 ACSR…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Re UGL Process Solutions Pty Ltd

Details

AGLC: Re UGL Process Solutions Pty Ltd [2012] NSWSC 1256
Case: [2012] NSWSC 1256
Decision Date: 18 October 2012

CaseChat Overview and Summary

In the matter of UGL Process Solutions Pty Ltd, the applicant sought to set aside a statutory demand issued by the respondent. The statutory demand was issued under section 459C of the Corporations Act 2001 (Cth) and sought payment of a debt owed by the applicant to the respondent. The applicant argued that there was a genuine dispute as to the existence or amount of the debt, and that there were other reasons to set aside the demand. The case was heard in the Federal Circuit Court of Australia.

The primary legal issue before the court was whether the applicant had established a genuine dispute as to the existence or amount of the debt, or whether there were other reasons to set aside the statutory demand. The court also had to consider whether there was a defect in the statutory demand that would give rise to substantial injustice, and whether there had been a proper use of the statutory regime. The court considered the relevant statutory provisions, case law, and the evidence presented by both parties.

The court found that the applicant had not established a genuine dispute as to the existence or amount of the debt, and that there were no other reasons to set aside the statutory demand. The court noted that the applicant had not provided any evidence to support its claims of a dispute, and that the respondent had provided evidence to support its claim for payment. The court also found that there was no defect in the statutory demand that would give rise to substantial injustice, and that the statutory regime had been properly used. The court dismissed the application to set aside the statutory demand.

The court ordered that the application be dismissed and that the applicant pay the respondent's costs of the application. The court did not make any orders as to the amount of costs or the basis on which they were to be paid.

Orders