Finance & Equity v Leveraged Equities; Aussie Products v Leveraged Equities [2007] NSWSC 886

New South Wales Supreme Court

CITATION : Finance & Equity v Leveraged Equities; Aussie Products v Leveraged Equities [2007] NSWSC 886

HEARING DATE(S) : 25 July 2007 JUDGMENT OF : Hammerschlag J

EX TEMPORE JUDGMENT DATE : 25 July 2007

DECISION : Applications dismissed with costs.

CATCHWORDS : CORPORATIONS – Application under s 459G, or s 459H or s 459J(1)(b) of the Corporations Act 2001 (Cth) to set aside statutory demands – Moneys advanced for the purchase of shares and options and used for that purpose – Whether genuine dispute or countervailing claim arising from purported representation that lender would not, absent event of default, exercise its right to repayment until a particular date – Loan contract entitled lender to demand repayment without default – Where damages sought in offsetting claim, some evidence supporting quantum must be adduced – No evidence that borrower's position was worse than it would have been had it not borrowed the money – No direct or indirect indication that lender would not enforce its contractual rights – No genuine dispute as to existence of debt

LEGISLATION CITED : Corporations Act 2001 (Cth)

Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 CASES CITED : Sewmail (Australia) Pty Ltd v Booby Traps Pty Ltd (1997) 23 ACSR 339 MK & JA Roche Pty Ltd v Metro Edgley Pty Ltd [2004] NSWSC 744

Finance & Equity Pty Limited (Receiver & Manager Appointed) ACN 122 534 678 PARTIES : Leveraged Equities Pty Limited ACN 051 629 282 Aussie Products Pty Limited (Receiver & Manager Appointed) ACN 115 970 995 Leveraged Equities Pty Limited ACN 051 629 282