Source Co International Pty Limited

Source Co International Pty Limited was the applicant in proceedings before Nicholas Barbey. The applicant sought to set aside a statutory demand issued by a creditor. The core of the dispute concerned whether the applicant had a genuine dispute about the existence of the debt claimed in the statutory demand.

The primary legal issue before the court was whether the applicant had established that there was a "genuine dispute" regarding the debt, as contemplated by section 459H of the Corporations Act 2001 (Cth). This required the court to assess whether the applicant's grounds for disputing the debt were substantial and arguable, rather than merely vexatious or frivolous.

Nicholas Barbey found that the applicant had failed to demonstrate a genuine dispute. The court considered the evidence presented by both parties and concluded that the applicant's contentions regarding alleged defects in the goods supplied and a purported oral agreement to reduce the debt lacked sufficient substantiation to raise a real question as to the debt's existence. The court applied the principles established in case law concerning the threshold for establishing a genuine dispute, emphasising that mere assertions or unsubstantiated claims are insufficient.

The application to set aside the statutory demand was dismissed.