John Shearer Ltd & Anor v GEHL Company [1995] FCA 430

C A T C H W O R D S CORPORATIONS - Statutory demand - bill of exchange - whether debtor can have statutory demand set aside because of an off-setting claim. BILL OF EXCHANGE - See above Corporate Law Reform Act 1992 Bills of Exchange Act 1909 (Cth) Topfelt v State Bank of New South Wales (1993) 47 FCR 226 at 231 Mibor Investments v Commonwealth Bank of Australia [1994] 2 VR 290 at 293-294 Nova (Jersey) Knit Ltd v Kammgarn Spinnerei G.m.b.H [1977] 1 WLR 713 Cebora S.N.C. v S.I.P. (Industrial Products) Ltd [1976] 1 Lloyd's Rep 271 Mobil Oil Australia Ltd v Caulfield Tyre Services Pty Ltd (1984) VR 440 Buying Systems (Aust) Pty Ltd v Tien Mah Litho Printing Co (Pte) Ltd (1986) 5 NSWLR 317 Bank of England v Vagiliano Bros [1891] AC 107 JOHN SHEARER LIMITED and ARROWCREST GROUP PTY LTD Applicants - and - GEHL COMPANY Respondent O'LOUGHLIN J. ADELAIDE 9 JUNE 1995

IN THE FEDERAL COURT OF AUSTRALIA ) ) SOUTH AUSTRALIAN DISTRICT REGISTRY ) ) GENERAL DIVISION ) No. SG 3117 of 1994 No. SG 3154 of 1994 B E T W E E N: JOHN SHEARER LIMITED and ARROWCREST GROUP PTY LTD Applicants - and - GEHL COMPANY Respondent MINUTES OF ORDER JUDGE MAKING ORDER : O'LOUGHLIN J. WHERE MADE : ADELAIDE DATE OF ORDER : 9 JUNE 1995 THE COURT ORDERS THAT: 1. That these proceedings be adjourned sine die with liberty to any party to apply to relist them on 2 days notice. 2. That the respondent bring in short minutes of order in terms consistent with the reasons this day published with leave reserved to the applicants to speak to the minutes of order. 3. That all questions of costs be reserved for further argument. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA ) ) SOUTH AUSTRALIAN DISTRICT REGISTRY ) ) GENERAL DIVISION ) No. SG 3117 of 1994 No. SG 3154 of 1994 B E T W E E N: JOHN SHEARER LIMITED and ARROWCREST GROUP PTY LTD Applicants - and - GEHL COMPANY Respondent REASONS FOR JUDGMENT CORAM: O'LOUGHLIN J. PLACE: ADELAIDE DATE : 9 JUNE 1995 Applications for review of decisions of a Registrar. The short point in these proceedings in whether the Corporations Law ("the Law") has had any effect upon the rights of a creditor when his debtor dishonours a bill of exchange. Expressed another way (and absent fraud and other specialty defences) does acceptance of a bill of exchange still constitute an irrevocable and unconditional obligation to meet the face value of the bill on its maturity date. The applicant, John Shearer Limited ("John Shearer") carries on business in South Australia as a dealer in Agricultural machinery; in particular, and until the occurrence of the events that gave rise to this litigation, it had, for many years, been the Australian distributor of farm machinery and spare parts that were manufactured by the respondent, Gehl Company, an American Corporation. The second