Seaham Air Pty Ltd v Australian Aerospace Ltd [2006] NSWSC 1241

New South Wales Supreme Court

CITATION : Seaham Air Pty Ltd v Australian Aerospace Ltd [2006] NSWSC 1241

HEARING DATE(S) : 10/11/06

JUDGMENT DATE : 10 November 2006

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : White J

EX TEMPORE JUDGMENT DATE : 11/10/2006

DECISION : 1. Order that the defendant's statutory demand for the payment of debt dated 27 April 2006 addressed to the plaintiff be set aside; 2. order the defendant pay the plaintiff's costs of the proceedings; 3. The exhibits may be returned after 28 days.

CATCHWORDS : CORPORATIONS – Winding up – Winding up in insolvency – Statutory demand – Application to set aside statutory demand – Genuine dispute as to indebtedness – Offsetting and other like claims – Defendant served plaintiff with statutory demand – No dispute between parties that debt the subject of statutory demand presently due and payable – Plaintiff alleged offsetting claim for damages against defendant in amount substantially exceeding debt claimed by defendant – s 459H Corporations Act 2001 (Cth) considered – Whether plaintiff precluded by estoppel or waiver from reliance on offsetting claim – Where plaintiff not precluded from raising offsetting claim – Application granted.

LEGISLATION CITED : Corporations Act 2001 (Cth) Trade Practices Act 1974 (Cth)

Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 783 Elm Financial Services Pty Ltd v MacDougal [2004] NSWSC 560 Mideb Nominees Pty Ltd v Begonia Pty Ltd (1994) 15 ACSR 70 CASES CITED : Advance Ship Design Pty Ltd v DJ Ryan t/as Davies Collison Cave & Anor (1995) 16 ACSR 129 Maniotis v Valimi Pty Ltd (2002) 4 VR 386 John Shearer Ltd v GEHL Company (1995) 60 FCR 136 Legione v Hately (1983) 152 CLR 406 Commonwealth v Verwayen (1990) 170 CLR 394 Polaroid Australia Pty Limited v Minicomp Pty Ltd (Santow J, 15 December 1997, unreported)