Ri-Co Holdings (Australia) Pty Ltd v Allied Sandblasters Pty Ltd

Ri-Co Holdings (Australia) Pty Ltd sought to set aside statutory demands issued by Allied Sandblasters Pty Ltd in February 2009. The statutory demands were accompanied by affidavits sworn on the day before the demands were issued. The dispute centred on the validity of the statutory demands, particularly the timing of the affidavits and whether there was a genuine dispute as to the debts claimed. The court had to determine whether the statutory demands should be set aside under section 459J(1)(b) of the Corporations Act 2001 because the affidavits were incapable of satisfying the requirements of section 459E(3).

The primary issue was whether the affidavits accompanying the statutory demands were sworn and filed within the time required by section 459E(3) of the Corporations Act. Additionally, the court had to assess if there was a genuine dispute as to the debts claimed. The affidavits stated that the debts were undisputed, but the applicant argued that there was a genuine dispute due to an agreement reached between the parties. The court also had to consider whether the statutory demands constituted an abuse of process.

The court found that the affidavits were not sworn and filed within the required time, rendering them incapable of satisfying the statutory requirements. However, the court held that this did not automatically lead to the setting aside of the statutory demands, as the genuineness of the dispute as to the debts was a significant factor. The court concluded that there was a genuine dispute because of the agreement between the parties, which the applicant claimed released it from its obligations. The court found that the statutory demands were not an abuse of process and that the applicants had not demonstrated any other grounds for setting aside the demands.

The court ordered that the statutory demands be set aside and that Allied Sandblasters pay Ri-Co Holdings' costs of and incidental to the application. The costs were to be assessed on the standard basis.