Tobzac Investments Pty Ltd

Tobzac Investments Pty Ltd was the applicant in proceedings before the Supreme Court of Victoria, seeking to set aside a statutory demand issued by the respondent, a creditor. The dispute concerned whether Tobzac Investments Pty Ltd was solvent and therefore not entitled to have the statutory demand set aside on the grounds of solvency.

The primary legal issue before the Court was whether Tobzac Investments Pty Ltd could establish that it was solvent for the purposes of section 459E(1)(b) of the Corporations Act 2001 (Cth). This required the Court to determine if the company was able to pay all of its debts as and when they became due and payable.

Justice Nicholas Smith considered the evidence presented by both parties regarding Tobzac Investments Pty Ltd's financial position. The Court applied the established legal principles for assessing solvency, which involve a holistic assessment of the company's ability to meet its liabilities. The Court found that the evidence did not demonstrate that Tobzac Investments Pty Ltd was solvent, and therefore the statutory demand was not liable to be set aside on that ground.

The Court ordered that the application to set aside the statutory demand be dismissed.