In the matter of Litigation Insurance Pty Limited [2017] NSWSC 334

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Litigation Insurance Pty Limited [2017] NSWSC 334 Hearing dates: 29 March 2017 Decision date: 03 April 2017 Before: Gleeson JA Decision: (1) Order that the statutory demand dated 12 October 2016 served on the plaintiff by the defendant be set aside. (2) Order that the defendant pay the plaintiff's costs of the proceedings. Catchwords: CORPORATIONS – statutory demand – application to set aside statutory demand – where application based on argument as to correct construction of shareholders agreement – whether appropriate to entertain argument on construction beyond establishing there is a genuine dispute – whether genuine dispute as to construction established. Legislation Cited: Corporations Act 2001 (Cth) s 459G, 459H(1)(a), 459J(1)(b) Cases Cited: 115 Constitution Road Pty Ltd v Alan Downey as Trustee for NBD Systems & Anor [2008] NSWSC 997; (2008) 220 FLR 216 Bentham Management Pty Ltd v Union Finance Pty Ltd [2007] SASC 42; 247 LSJS 103 Broadspectrum (Australia) Pty Ltd v Centauri Business Services Pty Ltd [2016] NSWSC 1045 Drillsearch Energy Ltd v Carling Capital Partners Pty Ltd [2009] NSWSC 1192 Electricity General Corporation t/as Verve Energy Limited v Woodside Energy Ltd; Woodside Energy Ltd v Electricity Generation Corporation t/as Verve Energy Limited (2014) 251 CLR 640; [2014] HCA 7 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 International Air Transport Association v Ansett Australia Holdings Limited (Subject to Deed of Company Arrangement) & Ors (2008) 234 CLR 151; [2008] HCA 3 In the Matter of Access Elevators Australia Pty Limited [2016] NSWSC 739 Kevin McNamara & Son Pty Ltd [2014] VSC 337; (2014) 287 FLR 96 Ligon 158 Pty Ltd v Huber [2016] NSWCA 330 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Spacorp Australia Pty Ltd v Myer Stores Ltd (2001) 19 ACLC 1270; [2001] VSCA 89 Wood v Capita Insurance Services Ltd [2017 UKSC 24 Category: Principal judgment Parties: Litigation Insurance Pty Limited (ACN 168 831 338) (Plaintiff) Australian Insolvency Group Pty Limited (ACN 057 874 763) (Defendant) Representation: Counsel: Mr JM Ireland (solicitor) (Plaintiff) Mr D Barnett (Defendant)