The MCF Group Pty Ltd v G.J.B. Legal Pty Ltd trading as Byles Anjos Lawyers

The MCF Group Pty Ltd sought to wind up G.J.B. Legal Pty Ltd trading as Byles Anjos Lawyers by presenting a statutory demand under the Corporations Act 2001 (Cth). The respondents sought to defend the application on the basis of an alleged offsetting claim. The nature of the dispute centred around the interpretation of the term "an affidavit supporting the application" in section 459G of the Corporations Act and the admissibility of evidence from verified pleadings in other proceedings.

The court was required to determine whether the respondents could rely on verified pleadings from prior proceedings to support their alleged offsetting claim against the applicant. Specifically, the court had to examine whether such pleadings could be considered as "an affidavit supporting the application" under section 459G and if the respondents had a genuine offsetting claim that could be used as a defence to the winding-up application.

In delivering the judgment, the court held that the term "an affidavit supporting the application" in section 459G of the Corporations Act referred to an affidavit specifically prepared to support the winding-up application and not verified pleadings from other proceedings. The court found that the respondents had not provided an affidavit supporting the application as required by the statute. Furthermore, the court concluded that the respondents had no genuine offsetting claim because the alleged professional negligence did not relate to the debt claimed in the statutory demand. Consequently, the application was dismissed.

The court ordered that the application for winding up be dismissed with costs to be paid by the respondents to the applicant.