Property Builders Pty Ltd v Carlamax Properties Pty Ltd; Property Builders (Constructions) Pty Ltd v Carlamax Properties Pty Ltd [2011] NSWSC 1068

Supreme Court New South Wales

Medium Neutral Citation: Property Builders Pty Ltd v Carlamax Properties Pty Ltd; Property Builders (Constructions) Pty Ltd v Carlamax Properties Pty Ltd [2011] NSWSC 1068 Hearing dates: 2 August 2011 Decision date: 14 September 2011 Jurisdiction: Equity Division - Corporations List Before: White J Decision: Refer to para [68]-[70] of judgment. Catchwords: CORPORATIONS - statutory demand - application to set aside statutory demand - offsetting claim - definition of "offsetting claim" in s 459H, Corporations Act 2001 (Cth) - offsetting claims include cross-demands that do not amount to a set-off - contractual agreement precluding set-off does not prevent company relying on the claim as offsetting claim under s 459H - Jem Developments Pty Ltd v Hansen Yuncken Pty Ltd [2006] NSWSC 1308 not followed - whether offsetting claim genuine - arguable basis for offsetting claim - not possible to calculate offsetting claim on evidence adduced by plaintiffs - proceedings adjourned to allow the plaintiffs opportunity to properly quantify offsetting claim to extent found to be genuine

CORPORATIONS - statutory demand - application to set aside statutory demand - "some other reason" to aside statutory demand, s 459J(1)(b) Corporations Act 2001 (Cth) - reason must be good reason as to why presumption of insolvency should not arise from non-compliance with the statutory demand - possibility that funds may become available to pay debt provides no reason why presumption of insolvency should not arise from non-compliance Legislation Cited: Corporations Act 2001 (Cth) Building and Construction Industry Security of Payment Act 1999 Cases Cited: Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund [1996] FCA 1783; (1996) 70 FCR 452 Adelaide Bank Ltd v Property Builders Pty Ltd [2010] NSWSC 830 Port of Melbourne Authority v Anshun Pty Ltd [1981] HCA 45; (1891) 147 CLR 589 John Shearer Limited v GEHL Company [1995] FCA 1789; (1995) 60 FCR 136 L & D Acoustics Pty Ltd v Pioneer Electronics Australia Pty Ltd (1982) 1 ACLC 536 Pearson's Products Pty Ltd v CP Technologies Pty Ltd [1999] NSWSC 575 Seaham Air Pty Ltd v Australian Aerospace Limited [2006] NSWSC 1241 Max Cooper & Sons (Builders) Pty Ltd v M & E Booth & Sons Pty Ltd [2003] NSWSC 929; (2003) 202 ALR 680 Demir Pty Ltd v Graf Plumbing Pty Ltd [2004] NSWSC 553 Greenaways Australia Pty Ltd v CBC Management Pty Ltd [2004] NSWSC 1186 Plus 55 Village Management Pty Ltd v Parisi Homes Pty Ltd [2005] NSWSC 559 Aldoga Aluminium Pty Ltd v De Silva Starr Pty Ltd [2005] NSWSC 284 Falgat Constructions v Masterform [2005] NSWSC 525 BBB Constructions Pty Ltd v Frankipile Australia Pty Ltd [2008] NSWSC 982 Reed Construction (Qld) Pty Ltd v Dellsun Pty Ltd [2009] QSC 263; [2010] 2 Qd R 481 Jem Developments Pty Ltd v Hansen Yuncken Pty Ltd [2006] NSWSC 1308; (2006) 205 FLR 432 Jem Developments Pty Ltd v Hansen Yuncken Pty Ltd [2006] NSWSC 1378; (2006) 60 ACSR 393 Blue Hills Village Management (Liverpool) Pty Ltd v Babcock & Brown International Pty Ltd [2009] NSWSC 87 Project Venture Development No. 11 Pty Limited v TQM Design & Construct Pty Ltd [2009] NSWSC 699 Abadeen Group Pty Limited v Bluestone Property Services Pty Limited [2011] NSWSC 137 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 Portrait Express (Sales) Pty Ltd v Kodak (Australasia) Pty Ltd (1996) 20 ACSR 746 Category: Principal judgment Parties: Property Builders Pty Ltd (Plaintiff 2011/61609) Property Builders (Constructions) Pty Ltd (Plaintiff 2011/61746) Carlamax Properties Pty Ltd (Defendant) Representation: R Freeman (Plaintiffs) B Nolan (Defendant) Phontos Legal (Plaintiff) Deutsch Partners (Defendant) File Number(s): 2011/61609 2011/61746