Reschke Pty Ltd v Digiorgio Family Wines Pty Ltd

Reschke Pty Ltd applied to the Supreme Court of South Australia to set aside a statutory demand issued by Digiorgio Family Wines Pty Ltd. The core of the dispute concerned whether Reschke Pty Ltd genuinely disputed its alleged indebtedness to Digiorgio Family Wines Pty Ltd.

The Full Court of the Supreme Court of South Australia was required to determine whether there was a "genuine dispute" as to the existence of the debt, which is a jurisdictional ground for setting aside a statutory demand under the Corporations Act 2001 (Cth). The Court also considered the nature and quality of evidence required to establish such a dispute.

The Court reasoned that a genuine dispute exists if a party raises a claim that has a real prospect of success, even if it is not a particularly strong claim. It is not necessary for the dispute to be substantial or complex, but it must be more than a mere assertion of a dispute. The Court emphasised that the onus is on the applicant to demonstrate the existence of a genuine dispute, and this requires more than simply denying the debt. The Court found that Reschke Pty Ltd had failed to demonstrate a genuine dispute regarding the indebtedness.

Consequently, the Full Court dismissed the appeal and affirmed the order of the primary judge setting aside the statutory demand.