Willaire Pty Ltd v Equititrust Ltd

Case [2012] QSC 3


SUPREME COURT OF QUEENSLAND

CITATION:

Willaire Pty Ltd v Equititrust Ltd [2012] QSC 3

PARTIES:

WILLAIRE PTY LTD

(applicant)

v

EQUITITRUST LTD

(respondent)

FILE NO/S:

BS8061/11

DIVISION:

Trial

PROCEEDING:

Application

DELIVERED ON:

31 January 2012

DELIVERED AT:

Supreme Court, Brisbane

HEARING DATE:

25 October 2011

JUDGE:

Douglas J

ORDER:                   

1.   Vary the amount payable pursuant to the statutory demand to $43,842.32;

2.   Declare the demand to have had effect, as so varied, as from when the demand was served on the company; and

3.    Otherwise dismiss the application.

CATCHWORDS:

CORPORATIONS – WINDING UP – WINDING UP IN INSOLVENCY – STATUTORY DEMAND – APPLICATION TO SET ASIDE DEMAND – GENERALLY – where application to set aside statutory demand relating to costs order – where costs assessed in amount of $68,621.52 – where appearance entered on behalf of a shareholder of applicant – where appearance also entered on behalf of sole director of applicant – whether applicant had standing to bring application – where statutory demand posted to applicant’s registered address on 16 August 2011 – where evidence that applicant’s director received statutory demand on 19 August 2011 – where application and supporting affidavit filed on 9 September 2011 – whether originating process and supporting affidavit filed and served within time – whether applicant had an offsetting claim – whether some other reason why demand should be set aside

Acts Interpretation Act 1901 (Cth), s 29
Corporations Act
2001 (Cth), ss 459G(2), 459G(3)(a) Uniform Civil Procedure Rules 1999 (Qld), r 394

ASIC v Lanepoint Enterprises Pty Ltd [2006] FCA 1163 cited
Capital Globe Investments Pty Ltd v Parker Investments Australia Pty Ltd [2011] QSC 31 cited
Elphick v Elliot [2003] 1 Qd R 362 cited
Graywynter Properties Pty Ltd v Gas & Fuel Corp
Superannuation Fund (1996) 70 FCR 452 cited
Scope Data Systems Pty Ltd v Goman (2007) 70 NSWLR 176 cited
The Charan Group Pty Ltd v Kaur [2011] QSC 71 cited
Virgtel Ltd v Zabusky (No 2) [2009] QCA 349 cited
Willaire Pty Ltd v Equitirust Ltd [2010] QCA 350 referred

COUNSEL:

J B Sweeney for the applicants

G Handran for the respondent

SOLICITORS:

QBM Lawyers for the applicants

Tucker and Cowan Solicitors for the respondent

  1. Douglas J:  The applicant, Suzanne Spottiswood, holds 80 percent of the shares of Willaire Pty Ltd, a company now in receivership.  The other applicant, Ailsa Nilson, is the sole director of Willaire.  Willaire owes $68,621.52 to the respondent, Equititrust Ltd, pursuant to a costs order made in litigation conducted in this court.   Equititrust has issued a statutory demand based on the costs order that the applicants, acting on behalf of Willaire, have applied to set aside.  Their standing to bring the application, Willaire being in receivership, was not accepted by the respondent. 

  1. That issue and a number of other issues need to be determined.  The other issues include whether the originating application and affidavit were filed and served within 21 days of the service of the statutory demand, whether evidence relied on by…

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AGLC
Willaire Pty Ltd v Equititrust Ltd [2012] QSC 3
Case
[2012] QSC 3
Decision Date

CaseChat Overview and Summary

The case of Willaire Pty Ltd v Equititrust Ltd involved a dispute regarding a statutory demand issued by Equititrust Ltd against Willaire Pty Ltd. The matter was heard in the Federal Circuit Court of Australia. The primary issue was whether the application by Willaire Pty Ltd to set aside the statutory demand was valid and whether it should be dismissed. The dispute centred on the timing of the application, the standing of Willaire Pty Ltd to bring the application, and whether there was an offsetting claim or another reason justifying the setting aside of the demand.

The legal issues addressed by the court included whether Willaire Pty Ltd had standing to apply to set aside the statutory demand, considering that an appearance had been entered on behalf of both a shareholder and the sole director of Willaire Pty Ltd. Additionally, the court had to determine whether the application and supporting affidavit were filed within the required time frame, as the statutory demand was posted on 16 August 2011 and the application was filed on 9 September 2011. The court also examined whether Willaire Pty Ltd had an offsetting claim and if there were any other reasons why the demand should be set aside.

The court found that Willaire Pty Ltd did not have standing to bring the application due to the appearances entered on behalf of the shareholder and the director. It was determined that the application and supporting affidavit were not filed within the required time frame, and there was no offsetting claim or other reason to set aside the demand. Consequently, the court varied the amount payable under the statutory demand to $43,842.32, declared the demand to have effect as so varied, and dismissed the application.

The final orders of the court were to vary the amount payable pursuant to the statutory demand to $43,842.32, declare the demand to have effect as so varied from the date it was served on the company, and otherwise dismiss the application.

Orders

Orders of the court

1. Vary the amount payable pursuant to the statutory demand to $43,842.32;

2. Declare the demand to have had effect, as so varied, as from when the demand was served on the company; and

3. Otherwise dismiss the application.

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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