In the matter of Fujian Xingxing Restaurant Pty Limited [2020] NSWSC 1131

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Fujian Xingxing Restaurant Pty Limited [2020] NSWSC 1131 Hearing dates: 26 June 2020 Date of orders: 25 August 2020 Decision date: 25 August 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Set aside statutory demand with costs. Catchwords: CORPORATIONS – Statutory demand – Application to set aside statutory demand on the basis of offsetting claim – offsetting claims subject of Federal Court proceedings – dispute as to construction of licence agreement – accessorial liability under Australian Consumer Law – reliance on pleadings in other proceedings – plausible contentions in respect of both offsetting claims – demand set aside Legislation Cited: Corporations Act 2001 (Cth), ss 459G, 459H, 459H(1)(b), 459J Competition and Consumer Act 2010 (Cth), s 76; Sch 2: ss 18, 21 Evidence Act 1995 (NSW), s 75 Trade Practices Act 1974, s 75B Cases Cited: Ashbury v Reid [1961] WAR 49 Australian Securities and Investments Commission (ASIC) v ActiveSuper Pty Ltd (in liq) (2015) 235 FCR 181; [2015] FCA 342 Bhagat v Global Custodians Limited [2002] FCA 223; [2002] FCAFC 51 Britten-Norman Pty Ltd v Analysis & Technology Australia Pty Ltd (2013) 85 NSWLR 601; [2013] NSWCA 344 Chase Manhattan Bank Australia Limited v Oscty Pty Limited [1995] FCA 1208; 17 ACSR 128 Creata (Aust) Pty Limited v Faull (2017) 125 ACSR 212; [2017] NSWCA 300 Crowe-Maxwell v Frost (2016) 91 NSWLR 414; [2016] NSWCA 46 Ebert v The Union Trustee Co of Australia Ltd [1960] HCA 50; (1960) 104 CLR 346 Elecon Australia Pty Limited v Brevini Australia Pty Limited (2009) 263 ALR 1; [2009] FCA 1327 Eumina Investments Pty Ltd v Westpac Banking Corp [1998] FCA 824; 84 FCR 454 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 at 787; (1994) 12 ACLC 669 First Equilibrium Pty Ltd v Bluestone Property Services Pty Ltd (in liq) (2013) 95 ACSR 654; [2013] FCAFC 108 Glew v Harrowell of Hunt & Hunt Lawyers [2003] FCA 373 Grandview Australia Pty Ltd v Budget Demolitions Pty Ltd (2019) 99 NSWLR 397; [2019] NSWCA 60 Graywinter principle (Graywinter Properties Pty Limited v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452; (1996) 21 ACSR 581 Hearne v Street (2008) 235 CLR 125; [2008] HCA 36 ICM Agriculture Pty Ltd v Young [2009] FCA 109 In re Foster, Ex parte Basan (1885) 2 Morr 29 In the matter of Acciona Infrastructure Australia Pty Limited [2019] NSWSC 1156 In the matter of Gorji Property Investment Pty Limited [2018] NSWSC 1671 In the matter of HIH Insurance Limited (in liquidation) (2016) 113 ACSR 318; [2016] NSWSC 482 In the matter of Litigation Insurance Pty Limited [2017] NSWSC 334 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 Medical Benefits Fund of Australia Limited v Cassidy (2003) 135 FCR 1; [2003] FCAFC 289 Panel Tech Industries (Aust) Pty Ltd v Australian Skyreach Equipment Pty Ltd (No 2) [2003] NSWSC 896 Quinlivan v Australian Competition & Consumer Commission (2004) 160 FCR 1; [2004] FCAFC 175 Re Cox (1934) 7 ABC 98 Re Morris Catering (Australia) Pty Ltd (1993) 11 ACLC 919; (1993) 11 ACSR 601 Re Verma; Ex parte Deputy Commissioner of Taxation [1984] FCA 340; (1985) 4 FCR 181 Scanhill v Century 21 Australasia [Pty Ltd (1993) 47 FCR 451 Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd [1997] FCA 681; (1997) 76 FCR 452 The MCF Group Pty Limited v GJB Legal Pty Limited trading as Byles Anjos Lawyers [2019] NSWSC 333 TR Administration Pty Ltd v Frank Marchetti & Sons Pty Ltd (2008) 66 ACSR 67; [2008] VSCA 70 Vogwell v Vogwell (1939) 11 ABC 83 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Category: Principal judgment Parties: Fujian Xingxing Restaurant Pty Limited (Plaintiff) Eternity Trading Pty Limited (Defendant) Representation: Counsel: Ms C Gong, Solicitor (Plaintiff) Mr W Chan (Defendant)