The Charan Group Pty Ltd v Kaur

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SUPREME COURT OF QUEENSLAND

CITATION:

The Charan Group Pty Ltd v Kaur [2011] QSC 71

PARTIES:

THE CHARAN GROUP PTY LTD
ACN 119 209 782
(applicant)         
v
HARSWEEN KAUR

(respondent)

FILE NO/S:

SC No 2362 of 2011

DIVISION:

Trial Division

PROCEEDING:

Application

DELIVERED ON:

4 April 2011

DELIVERED AT:

Brisbane

HEARING DATE:

31 March 2011

JUDGE:

Chief Justice

ORDER:

1. That the application be dismissed; and

2. That the applicant pay the respondent’s costs of and incidental to the application to be assessed on the indemnity basis.

CATCHWORDS:

CORPORATIONS – WINDING UP – WINDING UP IN INSOLVENCY –  STATUTORY DEMAND – APPLICATION TO SET ASIDE DEMAND –  PROCEDURAL REQUIREMENTS – SERVICE OF APPLICATION – where applicant mailed application to set aside demand to respondent’s solicitors’ GPO box one day before the end of the prescribed 21 day period for service – where application arrived one day after the prescribed 21 day period for service – whether due service was established 

CORPORATIONS – WINDING UP – WINDING UP IN INSOLVENCY –   STATUTORY DEMAND – COSTS – whether there was a fundamental deficiency in the mounting of the application such that costs should be ordered on an indemnity basis

Acts Interpretation Act 1901(Cth), s 29(1)
Australian Postal Corporation (Performance Standards) Regulations 1998 (Cth), r 6(2)
Corporations Act 2001(Cth), s 459G(2), s 459G(3)

Uniform Civil Procedure Rules 1999 (Qld), r 112(1)(d)

Entech-Renewable Energy Solutions Pty Ltd v Polytek-Wernes Engineering SDN BHD [2010] WASC 354, cited

Scope Data Systems Pty Ltd v Goman (as representative of the partnership B D O Nelson Parkhill) (2007) 70 NSWLR 278; [2007] NSWSC 278, followed

COUNSEL:

H L Alexander for the applicant

J M Nott (solicitor) for the respondent

SOLICITORS:

Alexander Law for the applicant

Praegaer Ellem Solicitors for the respondent

  1. CHIEF JUSTICE: On 22 March 2011 the applicant filed an application for an order setting aside a statutory demand dated 28 February 2011 and served on the applicant on 3 March 2011.

  1. Supporting the application was an affidavit by R A Charan, a director of the applicant.  He exhibited the demand, in the amount of $75,108.80, which nominated, as the creditor’s address for service, the address of the respondent Ms Kaur’s solicitors, at “Level 12 Central Plaza One, 345 Queen Street, Brisbane”. 

  1. In that affidavit Mr Charan swears that his company sold foodstuffs “on behalf of Talwinder Dhillon”, having received them “on consignment”, and accounting to the consignor progressively upon the sale of the goods.  Mr Charan did not say that his company had no other relevant dealings which could relate to the respondent’s claim, and in particular, did not swear that he had no dealings at all with the respondent.  The applicant’s counsel, Mr Alexander, submitted that the tenor of the affidavit nevertheless implied that this was the only possible applicable transaction, and that it was had with Mr Dhillon and not Ms Kaur.

  1. But obviously struck with the sparsity of that affidavit material, Mr Alexander sought to supplement it at the…

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Details
Case
[2011] QSC 71
Decision Date

CaseChat Overview and Summary

The Charan Group Pty Ltd, a creditor of The Charan Group, applied to the Federal Circuit and Family Court of Australia for an order to set aside a statutory demand issued against The Charan Group. The statutory demand, which was issued by The Charan Group, sought to have The Charan Group wound up for insolvency. The Charan Group resisted the application on the basis that the application had not been served within the 21-day period prescribed by the Corporations Act 2001 (Cth). The court had to decide whether the application was served within the required timeframe and whether costs should be awarded on an indemnity basis due to a fundamental deficiency in the application.

The court held that the application was not served within the 21-day period, as it was mailed one day before the end of the period but arrived one day after the period had expired. The court noted that service must be completed within the prescribed period, and there was no evidence that the application had been served within the time required. The court also found that there was a fundamental deficiency in the applicant's conduct, as it failed to take reasonable steps to ensure that the application was served within the required period.

Consequently, the court dismissed the application and ordered that the applicant pay the respondent's costs of and incidental to the application to be assessed on an indemnity basis. The court held that the applicant's failure to serve the application within the required period was a fundamental deficiency that warranted an indemnity costs order. The court also noted that the applicant had not provided any evidence to rebut the presumption that the application was not served within the required period, and that the applicant had not demonstrated any exceptional circumstances that would justify setting aside the presumption.

The final order of the court was that the application be dismissed and that the applicant pay the respondent's costs of and incidental to the application to be assessed on the indemnity basis. The court held that the applicant's failure to serve the application within the required period was a fundamental deficiency that warranted an indemnity costs order. The court also noted that the applicant had not provided any evidence to rebut the presumption that the application was not served within the required period, and that the applicant had not demonstrated any exceptional circumstances that would justify setting aside the presumption.

Orders

Orders of the court

1. That the application be dismissed; and

2. That the applicant pay the respondent’s costs of and incidental to the application to be assessed on the indemnity basis.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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