Violet International v Grandwood Homes

Violet International made an application to the court to set aside a statutory demand issued by Grandwood Homes. The demand was based on an alleged debt of over $250,000. The primary issue before the court was whether Violet International had a genuine dispute as to the existence or extent of the debt, which would allow for the statutory demand to be set aside. Further, the court had to consider whether an offsetting claim made by Violet International entitled it to orders under the Trade Practices Act.

The court examined the evidence provided by Violet International, which argued that the debt was not due and payable because the progress payment claims had not been certified as required by the contract. Violet International also asserted an offsetting claim based on alleged breaches of the contract by Grandwood Homes. The court found that Violet International had raised a genuine dispute as to the existence or extent of the debt, as the non-certification of progress payments by the certifier was a valid defence. Additionally, the court noted that the offsetting claim could potentially entitle Violet International to orders under the Trade Practices Act.

Consequently, the court set aside the statutory demand and ordered that the costs of the application would be paid by the party that did not succeed in the related proceedings in the Supreme Court of Western Australia. This outcome allowed Violet International to continue to contest the debt and pursue its offsetting claim without the immediate pressure of the statutory demand.