In the matter of Geitonia Pty Ltd [2016] NSWSC 1243

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Geitonia Pty Ltd [2016] NSWSC 1243 Hearing dates: 16 August 2016 Decision date: 07 September 2016 Jurisdiction: Equity - Corporations List Before: Black J Decision: Order that Plaintiff's application to set aside the creditor's statutory demand dated 24 March 2016 be dismissed with costs. Catchwords: CORPORATIONS — Winding up — Application to set aside creditor's statutory demand under ss 459H and 459J of the Corporations Act 2001 (Cth) – where there was a first and second mortgage held by the defendant over a property of the plaintiff – where debt specified in the creditor's statutory demand related to the first mortgage – where plaintiff contended there was a genuine dispute as to the existence of the debt and an offsetting claim on the basis that the defendant was obliged to have applied proceeds of sale of the mortgaged property to the debt in respect of the first mortgage rather than the second mortgage – where plaintiff contended that the demand should be set aside on the basis that the affidavit accompanying the demand was sworn by the defendant's solicitor – whether defendant's solicitor had sufficient personal knowledge to swear the affidavit accompanying the demand – whether Graywinter principle applies to restrict matters that can be relied upon – whether creditor's statutory demand ought to be set aside. Legislation Cited: - Conveyancing Act 1919 (NSW), s 94 - Corporations Act 2001 (Cth), ss 459F, 459G, 459H, 459J, 459S, Pt 5.4 - Real Property Act 1900 (NSW), s 58 - Supreme Court (Corporations) Rules 1999 (NSW), r 5.2 Cases Cited: - Austech Institute for Further Education Pty Ltd v Britt [2010] NSWSC 56 - B & M Quality Constructions Pty Ltd v Buyrite Steel Supplies Pty Ltd (1994) 15 ACSR 433 - Beauty Health Group Ltd v Sholl [2011] NSWSC 77 - Biron Capital Ltd v Velowing Pty Ltd [2003] NSWSC 1181 - Braams Group Pty Ltd v Miric [2002] NSWCA 417; (2002) 44 ACSR 124 - Britten-Norman Pty Ltd v Analysis and Technology Australia Pty Ltd [2013] NSWCA 344; (2013) 85 NSWLR 601 - Civil Systems Pty Ltd v ET Constructions Pty Ltd [2000] NSWSC 1119 - Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 - Faji (Australia) Constructions Pty Ltd v AC Professional Accounting Pty Ltd [2009] NSWSC 180 - Financial Solutions Australasia Pty Ltd v Predella Pty Ltd [2002] WASCA 51; (2002) 167 FLR 106 - Graywinter Properties Pty Ltd v Gas and Fuel Corp Superannuation Fund [1996] FCA 822; (1996) 70 FCR 452 - Homeward Bound Export Cherry Project Pty Ltd v Farm Working Hands Pty Ltd [2012] NSWCA 447 - Hopetoun Kembla Investments Pty Ltd v JPR Legal Pty Ltd [2011] NSWSC 1343; (2011) 87 ACSR 1 - Infratel Networks Pty Ltd v Gundry's Telco and Rigging Pty Ltd [2012] NSWCA 365; (2012) 92 ACSR 27 - Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 - Portrait Express (Sales) Pty Limited v Kodak (Australasia) Pty Limited [1996] NSWSC 199; (1996) 20 ACSR 746 - Re Australian Institute of Fitness (Vic & Tas) [2016] NSWSC 1143 - Re Scahill & Co Pty Limited [2016] NSWSC 566 Re Wollongong Coal Ltd [2015] NSWSC 1680; (2015) 110 ACSR 134 - Residential Housing Corporation v Esber [2011] NSWCA 25; (2011) 80 NSWLR 69 - Roberts v Wayne Roberts Concrete Constructions Pty Ltd [2004] NSWSC 734 - Saferack Pty Ltd v Marketing Heads Australia Pty Ltd [2007] NSWSC 1143; (2007) 214 FLR 393 - Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd [1997] FCA 681; (1997) 76 FCR 452 - Timberland Property Holdings Pty Ltd v Schindler Lifts Australia Pty Ltd [2011] NSWSC 466 - TR Administration Pty Ltd v Frank Marchetti & Sons Pty Ltd [2008] VSCA 70; (2008) 66 ACSR 67 - Zone Product Australia Pty Ltd v Allards Pty Ltd [2003] NSWSC 1161 Category: Principal judgment Parties: Geitonia Pty Limited (Plaintiff) Huizhong Investment Group Pty Ltd (Defendant) Representation: Counsel: G D McDonald (Plaintiff) P Reynolds (Defendant)