Structureco Inc v Starite Distributors Pty Ltd

Structureco Inc (the applicant) sought to set aside a statutory demand issued by Starite Distributors Pty Ltd (the respondent). The dispute concerned whether Structureco Inc was indebted to Starite Distributors Pty Ltd in the amount claimed in the statutory demand. The application was heard in the Supreme Court of Victoria.

The primary legal issue before the Court was whether Structureco Inc had established a ‘genuine dispute’ as to the existence of the debt claimed in the statutory demand, within the meaning of section 459H(1)(a) of the Corporations Act 2001 (Cth). This required the Court to consider the nature and substance of the alleged dispute and whether it was bona fide and arguable.

Justice Forno found that Structureco Inc had failed to demonstrate a genuine dispute. The Court noted that the alleged defects in the goods supplied by Starite Distributors Pty Ltd, which formed the basis of Structureco Inc's counterclaim, were not sufficiently particularised or supported by evidence to raise a real question as to the existence of the debt. The Court applied the principles established in cases such as *Sons of Gwalia Ltd v Australian Securities and Investments Commission*, emphasizing that a genuine dispute requires more than a mere assertion of a claim; it must be a substantial and arguable one.

The application to set aside the statutory demand was dismissed.