In the matter of Harmon International Holdings Pty Ltd [2019] NSWSC 413

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Harmon International Holdings Pty Ltd [2019] NSWSC 413 Hearing dates: 12 March 2019 Date of orders: 15 April 2019 Decision date: 15 April 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: (1) Pursuant to section 459H of the Corporations Act 2001 (Cth), order that the statutory demand dated 6 November 2018 served by the defendant upon the plaintiff be set aside.

(2) Order the defendant to pay the plaintiff's costs of the application. Catchwords: CORPORATIONS — Winding up — Statutory demand — Genuine dispute about existence of debt — Defendant claims to have been subrogated to mortgagee's rights on discharge of plaintiff's mortgage — Plaintiff disputes defendant's involvement in transaction — Plaintiff disputes entitlement to subrogation — Genuine dispute made out — Demand set aside.

EVIDENCE — Hearsay — Transcript of liquidator's examination — Application of s 591(14) of the Corporations Act 2001 (Cth) — Rule does not exclude admissibility through the Evidence Act 1995 (NSW).

EVIDENCE — Hearsay — Applicability of hearsay rule in application to set aside statutory demand — Admissibility of second-hand hearsay — Identification of the fact in issue as the existence of a genuine dispute.

EVIDENCE — Inferences — Rule in Jones v Dunkel (1959) 101 CLR 298 — Applicability of rule in application to set aside statutory demand. Legislation Cited: Corporations Act 2001 (Cth), ss 459E, 459G, 459H, 597(14) Evidence Act 1995 (Cth), s 63(2) Evidence Act 1995 (NSW), ss 63(2), 81 Cases Cited: Banque Financière de la Cité v Parc (Battersea) Ltd [1999] 1 AC 221 BI (Contracting) Pty Ltd v Strikwerda (2005) 3 DDCR 149; [2005] NSWCA 288 Britten-Norman Pty Ltd v Analysis & Technology Australia Pty Ltd (2013) 85 NSWLR 601; [2013] NSWCA 344 Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporisers Pty Ltd (1994) 13 ACSR 37 Challenger Managed Investments Limited v Direct Money Corp Pty Ltd (2003) 59 NSWLR 452; [2003] NSWSC 1072 Cochrane v Cochrane (1985) 3 NSWLR 403 Complete Equipment Solutions Pty Ltd v Tesab Engineering Ltd (2016) 309 FLR 236; [2016] VSC 253 Creata (Aust) Pty Ltd v Faull (2017) 125 ACSR 212; [2017] NSWCA 300 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785; (1994) 12 ACLC 669 Fodare Pty Ltd v Shearn (2010) 240 FLR 187; [2010] NSWSC 737 Ghana Commercial Bank v Chandiram [1960] AC 732 In the matter of Creata (Aust) Pty Ltd [2017] NSWSC 1055 In the matter of Gorji Property Investment Pty Ltd [2018] NSWSC 1671 In the matter of Westgate Wool Co Pty Ltd (2006) 206 FLR 190; [2006] SASC 372 Jones v Dunkel (1959) 101 CLR 298 Paul v Speirway Ltd (in liquidation) [1976] Ch 220 Radly Corporation Pty Ltd v Suncorp-Metway Ltd (2001) 19 ACLC 1597; [2001] VSC 272 Rathner (in his capacity as official liquidator of Kalimand Pty Ltd (in liq) v Hawthorn (2014) 320 ALR 776; [2014] FCA 1067 Re H & S Credits Ltd (in liquidation), Tucker v Roberts [1969] Qd R 280 Re Morris Catering (Australia) Pty Ltd (1993) 11 ACSR 601 Rogers v Resi-Statewide Corp Ltd (No 2) (1991) 32 FCR 344 Southern Equities Corp Limited (in liq) v Bond (2001) 78 SASR 554; [2001] SASC 70 Tony Innaimo Transport Pty Ltd v Skyroad Logistics Pty Ltd [2018] FCA 1134 Wily v Lo Presti (1997) 16 ACLC 82 Wylie v Carlyon [1922] 1 Ch 51 XSRE Pty Ltd v Lightning Electrical Group Pty Ltd [2011] NSWSC 1147 Texts Cited: Cleaver, M.J., Equitable Subrogation in Australia and England (2018) 29 JBFLP 34 Heydon et al., Meagher Gummow & Lehane's Equity: Doctrines & Remedies (5th ed., LexisNexis, 2014) Parkinson, ed., The Principles of Equity (2nd ed., Lawbook Co., 2003) Category: Principal judgment Parties: Harmon International Holdings Pty Ltd ACN 602 420 959 (Plaintiff)