Austral Softwoods Tumbarumba P/L v Tasman KB P/L; Harmoni P/L v Tasman KB P/L [2001] NSWSC 1122

New South Wales Supreme Court

CITATION : Austral Softwoods Tumbarumba P/L v Tasman KB P/L; Harmoni P/L v Tasman KB P/L [2001] NSWSC 1122 revised - 05/12/2001 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4310/01; 4311/01 HEARING DATE(S) : 12/11/01; 22/11/01 JUDGMENT DATE : 22 November 2001

No. 4310/01 In the matter of Austral Softwoods Tumbarumba Pty Ltd (ACN 093 877 028) Austral Softwoods Tumbarumba Pty Ltd (ACN 093 877 028) (Plaintiff) PARTIES : Tasman KB Pty Ltd (ACN 003 044 102) (Defendant) No. 4311/01 In the matter of Harmoni Pty Ltd (ACN 061 133 953) Harmoni Pty Ltd (ACN 061 133 953) (Plaintiff) Tasman KB Pty Ltd (ACN 003 044 102) (Defendant) JUDGMENT OF : Santow J

COUNSEL : D R Pritchard (Plaintiffs) M R Aldridge, SC (Defendant) SOLICITORS : Marsdens Law Group (Plaintiffs) Bartier Perry (Defendant) CATCHWORDS : CORPORATIONS -- Statutory demand based on non?payment of loans -- Application to set aside -- plausible contention requiring further investigation made out -- based on alleged representations to plaintiff/borrower/supplier (albeit borrower and supplier not identical) as to fulfilment of associated take or pay contracts by defendant/lender/purchaser to the effect that payment of loan would be assured from cash flow so generated -- offsetting claim not available where different parties within corporate groups were supplier as distinct from borrower save as derived from representations and contention being made out -- possibility of intra?group dividends or loans not sufficient of itself. LEGISLATION CITED : Corporations Act s459G, s549H Trade Practices Act 1974 (Cth) s51AC, s52, s87 DECISION : Statutory Demand set aside.