Statutory demands: Court of Appeal affirms principles for setting aside in recent cases

This post considers two recent cases in the Victorian Court of Appeal where applications to set aside statutory demands pursuant to section 459G of the Corporations Act were appealed: 

1) Bendigo and Adelaide Bank Ltd v Pekell Delaire Holdings Pty Ltd  [2017] VSCA 5

2) Go Connect Ltd v Sino Strategic International Ltd (in Liq) [2016] VSCA 315

Both cases affirm the principles applicable in applications to set aside a statutory demand. 

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Supreme Court checklist for defects in applications to set aside a statutory demand

The Supreme Court of Victoria uses a checklist to 'groom' applications to set aside statutory demands for any problems before the first return of the matter for directions. The checklist is attached below. 

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Setting aside a statutory demand: what must an applicant establish?

The terms of s 459H of the Corporations Act and the authorities make clear that, on an application to set aside a statutory demand, the applicant is required only to establish a genuine dispute or offsetting claim. The applicant is required to evidence the assertions relevant to the alleged dispute or offsetting claim only to the extent necessary for that primary task.

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