Bakota Holdings Pty Ltd v Bank of Western Australia Ltd [2011] NSWSC 1277

Supreme Court New South Wales

Medium Neutral Citation: Bakota Holdings Pty Ltd v Bank of Western Australia Ltd [2011] NSWSC 1277 Hearing dates: 26 October 2011 Decision date: 31 October 2011 Jurisdiction: Equity Division - Corporations List Before: Barrett J Decision: Order that the statutory demand dated 14 July 2011 served on the plaintiff by the defendant be set aside. Order that the defendant pay the plaintiff's costs of the proceedings Catchwords: CORPORATIONS - winding up - winding up in insolvency - statutory demand - application for order setting aside - demanded debt arises under guarantee - company relies on offsetting claim - guarantee requires payment in full and without deduction - whether right to offsetting claim bargained away - whether inability of company to set up its claim in an action for recovery of the demanded debt deprives the claim of the character of "offsetting claim" - whether claim genuine - whether amount of claim sufficiently articulated in supporting affidavit Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth), s 12DA Corporations Act 2001 (Cth), ss 459G, 459H Trade Practices Act 1974 (Cth), s 52 Cases Cited: Blue Hills Village Management (Liverpool) Pty Ltd v Babcock & Brown International Pty Ltd [2009] NSWSC 87; (2009) 3 BFRA 450 Bonner v Wilkinson (1822) 5 B & Ald 682; 106 ER 1340 Broke Hills Estate Pty Ltd v Oakvale Wines Pty Ltd [2005] NSWSC 638; (2005) 23 ACLC 1266 Commonwealth of Australia v Verwayen [1990] HCA 39; (1990) 170 CLR 394 Energy Equity Corporation Ltd v Sinedie Pty Ltd [2001] WASCA 419; [2001] 166 FLR 179 GE Capital Australia v Davis [2002] NSWSC 1146; (2002) 180 FLR 250 Graywinter Properties Pty Ltd v Gas & Fuel Corp Superannuation Fund (1996) 70 FCR 452 Jem Developments Pty Ltd v Hansen Yuncken Pty Ltd [2006] NSWSC 1308; (2006) 205 FLR 432 John Shearer Ltd v Gehl Company (1995) 60 FCR 136 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 McDonnell & East Ltd v McGregor [1936] HCA 28; (1936) 56 CLR 50 Ozone Manufacturing Pty Ltd v Deputy Commissioner of Taxation [2006] SASC 91; (2006) 94 SASR 269 Property Builders Pty Ltd v Carlamax Properties Pty Ltd [2011] NSWSC 1068 Seaham Air Pty Ltd v Australian Aerospace Pty Ltd [2006] NSWSC 1241 Category: Principal judgment Parties: Bakota Holdings Pty Ltd - Plaintiff Bank of Western Australia Ltd - Defendant Representation: Mr R D Glasson - Plaintiff Mr P J Dowdy - Defendant Eakin McCaffery Cox - Plaintiff Blake Dawson - Defendant File Number(s): 2011/00253260