Reale Bros Pty Ltd v Reale [2003] NSWSC 666

New South Wales Supreme Court

CITATION : Reale Bros Pty Ltd v Reale [2003] NSWSC 666 HEARING DATE(S) : 16/07/03 JUDGMENT DATE : 24 July 2003

JURISDICTION: Equity Division Corporations List JUDGMENT OF : Young CJ in Eq DECISION : Appeal allowed. Application for statutory demand to be set aside dismissed.

CATCHWORDS : CORPORATIONS [212]- Statutory demand- Application to set aside- Requirement to state grounds of dispute with evidence within 21 days- Whether also requirement to provide hearing with admissible evidence as to each element of cause of action in order to demonstrate genuine dispute- What is an equitable debt?- Whether company or another person principal debtor- What is meant by substance of guarantee transaction? WORDS & PHRASES- "Genuine dispute"- "Is satisfied"- "Debt". LEGISLATION CITED : Corporations Act 2001, ss 459G, 459H(1), 459J Evidence Act 1995, s 136 AGC (Advances) Ltd v West (1984) 5 NSWLR 590 (C/A (1986) 5 NSWLR 610) British Thomson-Houston Co Ltd v British Insulated and Helsby Cables Ltd [1924] 2 Ch 160 Edwards v Lennon (1866) 6 SCR (NSW) (Eq) 18 Energy Equity Corp Ltd v Sinedie Pty Ltd (2001) 166 FLR 179 Ex parte Adamson; Re Collie (1878) 8 Ch D 807 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 FAI v Southern Cross Exploration NL (No 3) (1986) 4 ACLC 447 Financial Solutions Australasia Pty Ltd v Predella Pty Ltd (2002) 167 FLR 106 Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452; 21 ACSR 581 Greenough v McClelland (1860) 2 El & El 429; 121 ER 162 Hollier v Eyre (1842) 9 Cl & Fin 1; 8 ER 313 John Holland Construction & Engineering Pty Ltd v Kilpatrick Green Pty Ltd (1994) 14 ACSR 250 CASES CITED : Manley v Boycot (1853) 2 El & Bl 46; 118 ER 686 Manzo v 555/225 Pitt Street Pty Ltd (1990) 21 NSWLR 1 Re Morris Catering (Australia) Pty Ltd (1993) 11 ACSR 601 Re Steel Wing Company Ltd [1921] 1 Ch 349 Reale v Reale [2003] NSWSC 293 Rouse v Bradford Banking Co [1894] AC 586 Saunders v Smith (1838) 3 My & Cr 711; 40 ER 1100 71 Paisley Street Footscray Pty Ltd v Vineyards Estate Pty Ltd (Olney J, Federal Court, 18.8.1995) SMEC International Pty Ltd v CEMS Engineering Inc (2001) 38 ACSR 595 South Australia v Wall (1980) 24 SASR 189 Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd (1997) 76 FCR 452 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 Wickstead v Browne (1992) 30 NSWLR 1 PARTIES : Reale Bros Pty Limited (Plaintiff/Respondent) Ludmilla Marika Reale (Defendant/Appellant) FILE NUMBER(S) : SC 6004/02 COUNSEL : G O Blake SC (Plaintiff/Respondent) V R W Gray (Defendant/Appellant) SOLICITORS : N J Papallo & Co (Plaintiff/Respondent) Lang Gellert & Noonan (Defendant/Appellant)