Redglove Holdings Pty Ltd v. GNE & Associates Pty Ltd [2001] NSWSC 867

Reported Decision : (2002) 20 ACLC 304

New South Wales Supreme Court

CITATION : Redglove Holdings Pty Ltd v. GNE & Associates Pty Ltd [2001] NSWSC 867 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4663/01 HEARING DATE(S) : 2 October 2001 JUDGMENT DATE : 3 October 2001

PARTIES : Redglove Holdings Pty Limited [Plaintiff] GNE & Associates Pty Limited [Defendant] JUDGMENT OF : Palmer J

COUNSEL : Justin Young [Plaintiff] Matthew Tyson [Defendant] SOLICITORS : Grogan & Webb [Plaintiff] Greg Wilkinson [Defendant] CATCHWORDS : CORPORATIONS - STATUTORY DEMAND - GENUINE DISPUTE - ABUSE OF PROCESS - Defendant serves statutory demand knowing that Plaintiff disputes debt - Plaintiff fails to apply within time to set aside statutory demand under s.459G - Plaintiff seeks injunction to restrain commencement of winding up proceedings as abuse of process - genuine dispute found - whether seeking to wind up company for non-payment of genuinely disputed debt is abuse of process - conflict in authorities - principles discussed - Held - no evidence that Defendant's purpose in issuing statutory demand and seeking to invoke legislative scheme of Part 5.4 is other than to test genuineness of dispute and to collect payment of debt - no abuse of process. LEGISLATION CITED : Corporations Act - Gramwick Investments Pty Ltd v Advanced Underpinning Pty Ltd [2000] NSWSC 1131 - David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 CASES CITED : - House of Tan Pty Ltd v Beachiris Pty Ltd (1996) 21 ACSR 527 - Intergraph Public Safety Pty Ltd v Tess Lawrence Media Services Pty Ltd (1996) 19 ACSR 523 - Liverpool Cement Renderers (Aust) Pty Limited v Landmarks Constructions (NSW) Pty Limited (1996) 19 ACSR 411 - Pacific Communication Rentals Pty Ltd v Walker (1993) 12 ACSR 287 DECISION : Plaintiff's Summons dismissed with costs.