Application to set aside statutory demand

In Newsnet Pty Limited v Patching [2011] NSWSC 690, the NSW Supreme Court considered an application to summarily dismiss a plaintiff's application under section 459G of the Corporations Act to set aside a statutory demand.

The court dismissed the defendant's application, holding that there was a real question to be tried that the plaintiff's application was served within the prescribed period and that the supporting affidavit raised a genuine dispute regarding the statutory demand.

The significance of this case is two-fold.

First, the decision highlights that, in interlocutory proceedings, courts will be reluctant to uphold an application to summarily dismiss an application to set aside a statutory demand in circumstances where, on its face, there is a 'real question to be tried' about whether there is a genuine dispute. Second, the decision re-iterates established case law holding that service of an application to set aside a statutory demand may be effected at the address for service stated in the statutory demand, and, depending on the circumstances, service by facsimile may be effective.