Ligon 158 Pty Ltd v Huber [2016] NSWCA 330

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Ligon 158 Pty Ltd v Huber [2016] NSWCA 330 Hearing dates: 4 November 2016 Date of orders: 28 November 2016 Decision date: 28 November 2016 Before: McColl JA at [1] Meagher JA at [2] Barrett AJA at [3] Decision: 1. Appeal allowed.

2. Set aside orders (1) and (2) made in Equity Division proceedings 2015/254776 on 6 May 2016 and in lieu thereof order as follows:

(a) Order that the statutory demand dated 7 August 2015 served on the plaintiff by the defendant on 10 August 2015 be set aside.

(b) Order that the defendant pay the plaintiff's costs of the proceedings.

3. Order that the sum of $410,000 paid into court by the appellant be paid out to the appellant.

4. Order that the respondent pay the appellant's costs of the proceedings in this Court. Catchwords: CORPORATIONS – winding up – statutory demand – application for order setting aside – primary judge dismissed such application based on finding of lack of genuine dispute about the existence of the debt the subject of the demand – creditor alleged indebtedness arising from payment by way of loan – company alleged a different characterisation of the payment – where the primary judge regarded company's contention as to characterisation as inherently implausible – several considerations identified in support of that conclusion – whether all such matters so devoid of plausibility as to require no further investigation Legislation Cited: Supreme Court Act 1970 (NSW), s 75A Corporations Act 2001 (Cth), ss 459G, 459H Cases Cited: Asian Century Holdings Inc v Fleuris Pty Ltd [2000] WASCA 59 Britten-Norman Pty Ltd v Analysis and Technology Australia Pty Ltd (2013) 85 NSWLR 601; [2013] NSWCA 344 Browne v Dunn (1893) 6 R 67 Central City Pty Ltd v Montevento Holdings Pty Ltd [2011] WASCA 5; (2011) 29 ACLR 11-011 CGI Information Systems & Management Consultants Pty Ltd v APRA Consulting Pty Ltd [2003] NSWSC 728; (2003) 47 ACSR 100 Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporisers (Aust) Pty Ltd (1994) 13 ACSR 34 Createc Pty Ltd v Design Signs Pty Ltd [2009] WASCA 85 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452; [1996] FCA 822 House v The King (1936) 55 CLR 499; [1936] HCA 40 Infratel Networks Pty Ltd v Gundry's Telco & Rigging Pty Ltd [2012] NSWCA 368; (2012) 297 ALR 372 Malec Holdings Pty Ltd v Scotts Agencies Pty Ltd (in liq) [2015] VSCA 330 Mibor Investments Pty Ltd v Commonwealth Bank of Australia [1994] 2 VR 290; (1993) 11 ACSR 362 MNWA Pty Ltd v Deputy Commissioner of Taxation [2016] FCAFC 1540 Panel Tech Industries (Australia) Pty Ltd v Australian Skyreach Equipment Pty Ltd (No 2) [2003] NSWSC 896 Powerhouse Australasia Pty Ltd v Viarc Pty Ltd [2006] VSC 508 Re UGL Process Solutions Pty Ltd [2012] NSWSC 1256 Re Wollongong Coal Ltd [2015] NSWSC 1680; (2015) 110 ACSR 134 Spacorp Australia Pty Ltd v Myer Stores Ltd [2001] VSCA 89; (2001) 19 ACLC 1270 Spencer Constructions Pty Ltd v G & M Aldridge Pty Ltd (1997) 76 FCR 452; [1997] FCA 681 TR Administration Pty Ltd v Frank Marchetti & Sons Pty Ltd [2008] VSCA 70; (2008) 66 ACSR 67 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Young v Queensland Trustees Ltd (1956) 99 CLR 560; [1956] HCA 51 Category: Principal judgment Parties: Ligon 158 Pty Limited (Appellant) Deborah Huber (Respondent) Representation: Counsel: Mr DL Cook SC (Appellant) Mr J E Marshall SC/Mr G P O'Neil (Respondent)