Watts v Adelaide Bank Limited [2009] FCAFC 169

FEDERAL COURT OF AUSTRALIA

Watts v Adelaide Bank Limited [2009] FCAFC 169 CORPORATIONS – appeal from dismissal of an application by judgment debtor pursuant to s 459G of the Corporations Act 2001 (Cth) to set aside creditor's statutory demand – where judgment obtained by default – whether primary judge erred in determining no "genuine dispute" within the meaning of s 469H(1)(a) of the Corporations Act – whether primary judge erred in concluding there was no offsetting claim within the meaning of s 459H(1)(b) of the Corporations Act BANKRUPTCY – appeal from dismissal of an application to set aside a bankruptcy notice – whether primary judge in error in determining it inappropriate to go behind a default judgment entered against the appellant – whether primary judge in error in concluding there was no counter-claim, set-off or cross-demand Held: appeals dismissed Bankruptcy Act 1995 (Cth), s 41(7) Corporations Act 2001 (Cth), ss 459E, 459G, 459H, 459J Adelaide Bank Limited v BMG Poseidon Corp Pty Limited [2008] NSWSC 68 referred to BMG Poseidon Corp Pty Ltd v Adelaide Bank Limited; In the Matter of BMG Poseidon Corp Pty Ltd (No 2) [2009] FCA 404 affirmed Brunninghausen v Glavanics [1998] FCA 230 distinguished IFA Homeware Imports Pty Ltd v Shanghai Jerrys Candle Co Ltd [2003] FCA 533 distinguished Killoran v Duncan, in the matter of Killoran [1999] FCA 1574 cited Mibor Investments Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 290 cited Richardson v Leonard Cohen & Co [2008] FCA 1392 referred to Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd (1997) 76 FCR 452 cited Tokich Holdings Pty Ltd v Sheraton Constructions (NSW) Pty Ltd (in liq) (2004) 185 FLR 130; [2004] NSWSC 527 referred to Watts v Adelaide Bank Limited [2009] FCA 420 affirmed

BHOJI WATTS and GAMBHIR WATTS v ADELAIDE BANK LIMITED ACN 061 461 550