Earlier this year, in PostNet Australia Pty Ltd  NSWSC 160, the Supreme Court of New South Wales delivered a timely reminder about creditors’ statutory.
The Plaintiff applied for a statutory demand in the amount of $442,732.56 ( being unpaid principal and interest on 2 loans) to be set aside under section 459G of the Corporations Act 2001 (Cth) (“CA”).
The Plaintiff did not dispute the amount owed, but argued it was not immediately due and payable because of changed repayment terms. The changed terms raised doubt about the exact due date for repayment.
The Court confirmed that where a debt is not disputed, but is also not immediately due and payable, it cannot properly be subject of a statutory demand.
The Court found that the creditors statutory demand could not stand because there was either or both of “a genuine dispute” about the debt (s 459H(1)(a), CA) and/or “some other reason” why the statutory demand should be set aside (s 459J(1)(b), CA).
The full judgement can be read here