In the matter of Kay Investment Holdings Pty Ltd - Kay Investment Holdings Pty Ltd v North East Developments Pty Ltd (in liq) [2011] NSWSC 1121

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Kay Investment Holdings Pty Ltd - Kay Investment Holdings Pty Ltd v North East Developments Pty Ltd (in liq) [2011] NSWSC 1121 Hearing dates: 9 September 2011 Decision date: 19 September 2011 Jurisdiction: Equity Division - Corporations List Before: Ward J Decision: Statutory demand set aside Catchwords: CIVIL PROCEDURE - application for stay of hearing pending application for leave to appeal interlocutory order - HELD - application refused in exercise of discretion - CORPORATIONS - application to set aside statutory demand on grounds that it defective and that genuine dispute/off-setting claim - HELD - statutory demand set aside Legislation Cited: Corporations Act 2001 (Cth) Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (Cth) Retail Leases Act 1994 (NSW) Supreme Court (Corporation) Rules 1999 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Adeels Palace Pty Ltd v Moubarah; Adeels Palace Pty Ltd v Najeem (No 2) [2009] NSWCA 130 Alexander v Cambridge Credit Corporation (1985) 2 NSWLR 685 Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175 Australian Securities and Investments Commission v Vines (2005) 55 ACSR 617; 23 ACLC 1387; [2005] NSWSC 738 B & M Quality Constructions Pty Ltd v Buyrite Steel Supplies Pty Ltd (1994) 15 ACSR 433 Broke Hills Estate Pty Ltd v Oakvale Wines Pty Ltd [2005] NSWSC 638 Buckland Products Pty Ltd v Deputy Commissioner of Taxation of the Commonwealth of Australia [2003] VSCA 85 Business To All Australia Pty Ltd v North East Developments Pty Ltd (receivers and managers appointed) [2011] NSWSC 668 Cameron v Cole [1994] HCA 5; (1944) 68 CLR 571 Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporises Pty Ltd (1994) 13 ACSR 37 Chief Commissioner of Stamp Duties v Paliflex Pty Ltd [1999] NSWSC 15; (1999) 149 FLR 179 Corporate Affairs Commission (Vic) v Bracht [1989] VR 821; (1988) 14 ACLR 728 CP York Holdings Pty Ltd v The Food Improvers Pty Ltd [2009] NSWSC 409 Craig v Kanssen [1943] 1 KB 256 DAG International Pty Ltd v DAG International Group [2005] NSWSC 1036 David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 Edge Technology Pty Ltd v Lite-on Technology Corporation (2000) 34 ACSR 301 Elm Financial Services Pty Ltd v MacDougal [2004] NSWSC 560 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785; 12 ACLC 669 First State Computing Pty Ltd v Kyling (1995) 13 ACLC 939 Fitness First Aust Pty Ltd v Dubow [2011] NSWSC 531 Gain Rural Holdings Pty Ltd v Commonwealth Development Bank of Australia Ltd (1997) 141 FLR 238 Goldspar Australia Pty Ltd v KWA Design Group Pty Ltd (1999) 17 ACLC 456 Grant Thornton Services (NSW) Pty Ltd v St George Wholesale Distributors Pty Ltd [2008] FCA 1777 Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452 Guardian Group Australia Pty Ltd v Alice Lu and Anor [2005] NSWSC 1299 Holpitt Pty Ltd v Swaab (1992) 33 FCR 474; 6 ACSR 488 Hornet Aviation Py Ltd v Ansett Australia Ltd (1995) 16 ACSR 445 Hoskins v Van Den-Braak and ors [1998] NSWSC 80 HVAC Construction (Qld) Pty Ltd v Energy Equipment Engineering Pty Ltd (2002) 44 ACSR 169 J Canon Australia Pty Ltd v Young Bros Pty Ltd [2009] NSWSC 842 Jem Developments v Hansen Yuncken [2006] NSWSC 1378; (2006) 60 ACSR 393 Jesseron Holdings Pty Ltd v Middle East Trading Consultants Pty Ltd (No 2) (1994) 122 ALR 717; 13 ACSR 787; 12 ACLC 490 LSI Australia Pty Ltd v LSI Holdings (2007) 25 ACLC 1602, [2007] NSWSC 1406 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 Magjarraj v Asteron Life Ltd [2009] NSWSC 1433 Master Paving Pty Ltd v Heading Contractors Pty Ltd (1997) 193 LSJS 1; 15 ACLC 1025 Micallef v ICI Australia Operations Pty Ltd [2001] NSWCA 274 NA Investment Holdings Pty Limited v Perpetual Nominees Limited [2010] NSWCA 210 Onefone Australia Pty Ltd v One Tel Ltd [2007] NSWSC 268 Panel Tech Industries (Australia) Pty Ltd v Australian Skyreach Equipment Pty Ltd (No 2) [2003] NSWSC 896 Partnership Pacific Ltd v Killen (NSWCA unreported 112/79) Perpetual Nominees Ltd v Masri Apartments Pty Ltd [2004] NSWSC 551; (2004) 49 ACSR 719 Process Machinery Australia Pty Ltd v ACN057 262 590 Pty Ltd [2002] NSWSC 45 Rainbow and Nature v Bronson and Jacobs [2006] NSWSC 217 Re Fratelli 's Fresh Pasta Pty Ltd [2011] NSWSC 576 Re Future Life Enterprises Pty Ltd (1994) 33 NSWLR 559 Re Morris Catering (Aust) Pty Ltd (1993) 11 ACSR 601 Re Rick Wilson & Co Pty Ltd (1982) 7 ACLR 354 Re Satellite Group Ltd [2000] NSWSC 984; (2000) 35 ACSR 565 Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd (1997) 76 FCR 452 Sultana Investments Pty Ltd v Cellcom Pty Ltd [2009] NSWSC 392 Switz Pty Ltd v Glowbind Pty Ltd; Glowbind Pty Ltd v Switz Pty Ltd [2000] NSWCA 37 Sycotex Pty Ltd v Baseler (1994) 122 ALR 531; 13 ACSR 766 Tatlers.com.au Pty Ltd v Davis [2006] NSWSC 1055; (2006) 203 FCR 473 Taylor v Taylor (1979) 143 CLR 1 Texel Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 298; (1993) 11 ACSR 535; Tokich Holdings Pty Ltd v Sheraton Constructions (NSW) Pty Ltd (in liq) [2004] NSWSC 527; (2004) 185 FLR 130 Topfelt Pty Ltd v State Bank of NSW (1993) 47 FCR 226; 12 ACSR 381 Trad v Harbour Radio Pty Ltd [2010] NSWCA 41 Vacuum Oil Co Pty Ltd v Stockdale (1942) (NSW) 239 at 243 Warragamba Winery Pty Ltd v State of NSW [2010] NSWCA 174 Web Wealth Pty Ltd v Helimount Pty Ltd [2006] FCA 1376 White v Overland [2001] FCA 1333 Willard King Organisation (1978) Pty Ltd v CT Franchises Pty Ltd [2009] NSWSC 97; (2009) 69 ACSR 612 Texts Cited: Austin and Black, Annotations to the Corporations Act Australian Corporation Law Principles & Practice Australian Law Reform Commission, Discussion Paper No 32 (August 1987) General Insolvency Inquiry Ford's Principles of Corporations Law Osborn's Concise Legal Dictionary (11th edn) Ritchie's Commentary on Uniform Civil Procedure Rules Category: Principal judgment Parties: Kay Investment Holdings Pty Ltd (Plaintiff) North East Developments Pty Ltd (Defendant) Representation: Counsel V R W Gray (Plaintiff) C R de Robillard (Defendant) Solicitors Corporate & Civil Legal (Plaintiff) Herbert Geer (Defendant) File Number(s): 11/050106