In the matter of Tetbury Pty Limited [2022] NSWSC 1670

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Tetbury Pty Limited [2022] NSWSC 1670 Hearing dates: 25 November 2022 Date of orders: 25 November 2022 Decision date: 25 November 2022 Jurisdiction: Equity - Corporations List Before: Black J Decision: Creditor's statutory demand is set aside. Defendant to pay the plaintiff's costs as agreed or as assessed. Catchwords: CORPORATIONS — Winding up — Statutory demand — Genuine dispute about existence or amount of debt — Where a law firm and its client were engaged in a dispute concerning fees charged by its legal representatives — Where a settlement was reached as to the payment of undisputed counsel fees but not as to disputed solicitor fees — Where the amount paid under the settlement was in fact applied by the law firm to its disputed fees — Where the law firm sought a determination by a costs assessor and used that determination to found a creditor's statutory demand issued to the client — Whether there is a genuine dispute about the existence or amount of debt — Whether the demand should be set aside for some other reason Legislation Cited: Corporations Act 2001 (Cth), ss 459H(1)(a), 459J(1)(b). Cases Cited: - Arcade Badge Embroidery Co Pty Ltd v Deputy Commissioner of Taxation (2005) 157 ACTR 22; [2005] ACTCA 3 - CP York Holdings Pty Ltd v The Food Improvers Pty Ltd [2009] NSWSC 409 - Gujarat NRE Australia Pty Limited v Gibbs [2006] NSWSC 211 - Hebbel Constructions Pty Ltd v Bitar Pty Ltd [2022] NSWSC 1594 - Ligon 158 Pty Ltd v Huber (2016) 117 ACSR 495; [2016] NSWCA 330 - Re Passion Projects Pty Ltd [2014] NSWSC 345 - Re Savemore Wholesale Pty Ltd [2021] NSWSC 307 - Re Tetbury Pty Ltd [2017] NSWSC 237 - Re Wollongong Coal Ltd (2015) 110 ACSR 134; [2015] NSWSC 1680 - Saferack Pty Ltd v Marketing Heads Australia Pty Ltd (2007) 214 FLR 393; [2007] NSWSC 1143 - Spencer Constructions Pty Ltd v G&M Aldridge Pty Ltd (1997) 76 FCR 452; [1997] FCA 681 - Tetbury Limited v Mahony Law [2021] NSWDC 691 Texts Cited: F Assaf, Winding Up in Insolvency (LexisNexis, 3rd ed, 2021) Category: Principal judgment Parties: Tetbury Pty Ltd (Plaintiff) John Francis Mahony trading as Mahony Law (Defendant) Representation: Counsel: M R Gracie (Plaintiff) A E Maroya (Defendant)