Stack v Elster Metering Pty Ltd

Case [2005] FCA 231


FEDERAL COURT OF AUSTRALIA

Stack v Elster Metering Pty Ltd [2005] FCA 231

CORPORATIONS LAW – applications to set aside two statutory demands – history of litigation between the parties – address of registered office of company at time of service -whether prepaid postage to company’s registered office amounts to service - whether genuine claim exists within the meaning of s 459H(5) because of possibility of pursuing special leave to appeal to the High Court against a decision of the Full Federal Court dismissing the appeal – whether doctrine of res judicata precludes contention that there is a genuine claim – whether pending application for special leave to appeal can amount to “some other reason” for setting aside statutory demand

BANKRUPTCY – application to set aside bankruptcy notice – assertion of cross demand – whether notice otherwise oppressive

Corporations Act 2001 (Cth) ss 109X, 459G, 459H, 459J, 459L
Bankruptcy Act 1966 (Cth) ss 30, 40(1)(g), 41(7)
Patents Act 1990 (Cth) Chapter 17
Evidence Act 1995 (Cth) s 160

Fancourt v Mercantile Credits Ltd (1983) 154 CLR 87 cited
David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 cited
Eumina Investments Pty Ltd v Westpac Banking Corporation (1998) 84 FCR 454 applied
Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporisers Pty Ltd (1994) 13 ACSR 37 applied

GEORGE STACK v ELSTER METERING PTY LTD (ACN 004 088 680) & ORS
Q 129 of 2004

G.S. TECHNOLOGY PTY LTD (ACN 011 062 767) v ELSTER METERING PTY LTD (ACN 004 088 680) & ORS
Q 3006 of 2003
Q 3007 of 2003

SPENDER J
14 MARCH 2005
BRISBANE


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

Q 129 of 2004

BETWEEN:

GEORGE STACK
APPLICANT

AND:

ELSTER METERING PTY LTD (ACN 004 088 680) (formerly Davies Shephard Pty Ltd)
FIRST RESPONDENT

WOODPICKERS AUSTRALIA PTY LTD (ACN 009 738 005) (formerly Davies Shephard (Queensland) Pty Ltd)
SECOND RESPONDENT

GSA INDUSTRIES (AUST) PTY LTD (ACN 004 784 301)
THIRD RESPONDENT

JUDGE:

SPENDER J

DATE OF ORDER:

14 MARCH 2005

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The application to set aside Bankruptcy Notice VN 900/2004 is dismissed.

2.The applicant pay the respondent’s costs of and incidental to this application, to be taxed if not agreed.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.


IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY

Q 3006 of 2003

BETWEEN:

G.S. TECHNOLOGY PTY LTD (ACN 011 062 767)
APPLICANT

AND:

ELSTER METERING PTY LTD (ACN 004 088 680)
FIRST RESPONDENT

WOODPICKERS AUSTRALIA PTY LTD (ACN 009 738 005) SECOND RESPONDENT

GSA INDUSTRIES (AUST) PTY LTD (ACN 004 784 301)
THIRD RESPONDENT

JUDGE:

SPENDER J

DATE OF ORDER:

14 MARCH 2005

WHERE MADE:

BRISBANE

THE COURT ORDERS THAT:

1.The application to set aside the statutory demand is dismissed as incompetent, pursuant to s 459G(2) of the Corporations Act 2001 (Cth).

2.The applicant pay the respondent’s costs of and incidental to this application, to…

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AGLC
Stack v Elster Metering Pty Ltd [2005] FCA 231
Case
[2005] FCA 231
Decision Date

CaseChat Overview and Summary

The case of Stack v Elster Metering Pty Ltd involved an application by the applicant to set aside a statutory demand issued by the respondent. The dispute was heard and determined by the Federal Court of Australia. The applicant sought to have the statutory demand set aside on the basis of certain procedural irregularities and the lack of a valid debt. The respondent, a company, argued that the statutory demand was correctly issued and that the applicant had not demonstrated any grounds for setting it aside.

The primary legal issue before the court was whether the statutory demand was correctly issued and, if not, whether there were grounds to set it aside under the Corporations Act 2001 (Cth). The court had to examine the validity of the statutory demand, the procedural requirements under the Act, and the applicant's arguments for setting it aside. The court also considered whether the applicant had demonstrated a valid defence to the debt claimed in the statutory demand.

The court found that the statutory demand was validly issued and that the applicant had not provided sufficient grounds to set it aside. The court held that the applicant had failed to demonstrate any irregularity in the service of the statutory demand or any valid defence to the debt claimed. The court also noted that the applicant had not challenged the existence or the amount of the debt. Consequently, the application to set aside the statutory demand was dismissed, and the applicant was ordered to pay the respondent's costs of and incidental to the application. The court held that the application was incompetent under s 459G(2) of the Corporations Act 2001 (Cth).

Orders

Orders of the court

1. The application to set aside Bankruptcy Notice VN 900/2004 is dismissed.

2. The applicant pay the respondent’s costs of and incidental to this application, to be taxed if not agreed.

1. The application to set aside the statutory demand is dismissed as incompetent, pursuant to s 459G(2) of the Corporations Act 2001 (Cth).

2. The applicant pay the respondent’s costs of and incidental to this application, to be taxed if not agreed.

1. The application to set aside the statutory demand is dismissed.

2. The applicant pay the respondent’s costs of and incidental to this application, to be taxed if not agreed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

SPENDER J

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Ratio Decidendi

Legal Principle Established

Established by: SPENDER J

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