In the matter of J Group Constructions Pty Ltd [2015] NSWSC 1607

Supreme Court New South Wales

Medium Neutral Citation: In the matter of J Group Constructions Pty Ltd [2015] NSWSC 1607 Hearing dates: 17 August and 14 September 2015 Date of orders: 30 October 2015 Decision date: 30 October 2015 Jurisdiction: Equity - Corporations List Before: Robb J Decision: (1) Pursuant to s 459H(4) of the Corporations Act 2001 (Cth), the creditor's statutory demand dated 21 July 2015 served by the defendant on the plaintiff be varied so that the amount of the demand is $8542.90 and the demand has effect as so varied from when it was served on the plaintiff. Catchwords: CORPORATIONS – debts – creditor's statutory demand – application to set aside – where demand based on judgment arising upon filing of adjudication certificate under the Building and Construction Industry Security of Payments Act 1999 (NSW) (the Act) – whether amenable to genuine dispute – whether amenable to offsetting claim – in present circumstances, no genuine dispute as to existence of the debt as demand arises from an adjudication certificate pursuant to the Act but there may be a countervailing liability – adjudicator rejected plaintiff's offsetting claim – adjudicator's rejection does not bind this court – relatively low threshold – statutory demand varied by amount of the plaintiff's offsetting claim Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Cases Cited: Bakota Holdings Pty Ltd v Bank of Western Australia Ltd [2011] NSWSC 1277 Demir Pty Ltd v Graf Plumbing Pty Ltd [2004] NSWSC 553 Deputy Commissioner of Taxation v Broadbeach Properties Pty Ltd [2008] HCA 41; (2008) 237 CLR 473 Diploma Construction (WA) Pty Ltd v KPA Architects Pty Ltd [2014] WASCA 91 Drum Cafe Australia Pty Ltd v Lieberman [2010] NSWSC 642 Elm Financial Services Pty Ltd v MacDougal [2004] NSWSC 560 Ettamogah Pub (Rouse Hill) Pty Ltd v Consolidated Constructions Pty Ltd (In Liq) [2006] NSWSC 1450 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 ICM Agriculture Pty Ltd v Young [2009] FCA 109 In the matter of Douglas Aerospace Pty Ltd [2015] NSWSC 167 Plaza West Pty Ltd v Simon's Earthworks (NSW) Pty Ltd [2008] NSWCA 279 Plus 55 Village Management Pty Ltd v Parisi Homes Pty Ltd [2005] NSWSC 559 Prime City Investments Pty Ltd v Paul Jones & Associates Pty Ltd [2013] NSWSC 2 W & P Reedy Pty Ltd v Macadams Baking Systems (Pty) Ltd [2007] NSWCA 146 Category: Principal judgment Parties: J Group Constructions Pty Ltd (plaintiff) PGA Rendering Group Pty Ltd (defendant) Representation: Counsel: T Bland (plaintiff) J Williams (defendant)