Sundarjee Bros (Aust) Pty Ltd v Sundarjee Bros (HK) Pty Ltd (in liq)

Sundarjee Bros (Aust) Pty Ltd sought to set aside a statutory demand issued by Sundarjee Bros (HK) Pty Ltd in liquidation. The dispute centred on whether there was a genuine dispute regarding the existence of the debt claimed and whether the debt had been statute-barred. The application was heard in the Federal Circuit Court of Australia. The central legal issues were whether the debt in question was genuinely disputed and whether it had been statute-barred. The court considered whether the acknowledgement of the debt in a 2000 agreement, to which the creditor was not a party, and in one version of the debtor's annual accounts constituted a sufficient acknowledgment to interrupt the running of the limitation period. The court found that while there was an argument that the debt was statute-barred, it was not cogent enough to warrant setting aside the statutory demand.

The Federal Circuit Court examined the nature of the acknowledgement of the debt, noting that it was not made by a party to the debt and was not contained in a formal document. The court held that the acknowledgment was not sufficient to interrupt the limitation period, and thus, the debt remained statute-barred. The court also considered the debtor's argument that the creditor's conduct had led to the delay in payment, but found that this did not constitute a genuine dispute as to the existence of the debt. The court held that the statutory demand should not be set aside as the debtor had not demonstrated a genuine dispute or that the debt was statute-barred. The creditor was entitled to enforce the debt through other means.