Wizcorp Pty Limited v McNeice

Case [2013] NSWSC 753


Supreme Court


New South Wales

Medium Neutral Citation: Wizcorp Pty Limited v McNeice [2013] NSWSC 753
Hearing dates:22/05/2013
Decision date: 14 June 2013
Jurisdiction:Equity Division - Corporations List
Before: Young AJ
Decision:

Vary statutory demand; no order as to costs

Catchwords: CORPORATIONS - Debts - Statutory demand - Application to set aside statutory demand
Category:Principal judgment
Parties: Wizcorp Pty Limited (Plaintiff)
David McNeice (First Defendant)
Aleita R McNeice (Second Defendant)
Representation: Counsel:
ET Finnane (Plaintiff)
RW Tregenza (Defendants)
Solicitors:
Senses Legal (Plaintiff)
Autore & Associates (Defendants)
File Number(s):2012/140385

Judgment

  1. HIS HONOUR: This is an application to set aside a statutory demand.

  1. This company is one of a group of five against whom statutory demands were issued by the defendants on the 15 April 2012. The five applications to set aside those demands were heard together on 22 May 2013, with the evidence of one being evidence in all.

  1. I gave reasons in the case of Touma Family Super Fund Pty Limited v McNeice (2012/140381), dealing with general matters of principle and matters which were common to each of the five companies. These reasons deal only with matters germane to Wizcorp Pty Ltd.

  1. The statutory demand was for $10,432.67. This was made up of five separate items, namely:

(a) Invoice #1908 for $2,750.00;

(b) Invoice #2538 for $2,970.00;

(c) Invoice #4011 for $2,365.00;

(d) Administration charges of $572.00;

(e) Interest charges totalling $1,775.67

  1. As to paragraphs (a) and (b), the plaintiff disputes the quantum of the invoices and alleges that the work was not actually done. Mr McNeice's affidavit of the 15 May 2013 gives full details of the work that was done and I can see no reason why I should not allow these sums.

  1. As to paragraph (c), the plaintiff claims that Tarrants, rather than the defendants, completed the work. This point was dealt with in my judgment in Touma Family Super Fund Pty Limited v McNeice (2012/140381) and for the reasons therein stated, the statutory demand should be varied to exclude this item.

  1. The plaintiffs arguments with respect to paragraphs (d), (e) and (f) were also dealt with in [37] and [41] of my judgment in Touma Family Super Fund Pty Limited v McNeice (2012/140381). For the reasons detailed in this judgment, this aspect of the statutory demand should be excluded.

  1. The result is that I vary the statutory demands by reducing them to $5,720.00 and declare that the statutory demand had effect as so varied from 12 April 2012. I extend the time for complying by 21 days after the date of these reasons. It seems to me that in the circumstances there should be no order for costs in these proceedings.

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Details
AGLC
Wizcorp Pty Limited v McNeice [2013] NSWSC 753
Case
[2013] NSWSC 753
Decision Date

CaseChat Overview and Summary

Wizcorp Pty Limited, a creditor, applied to the Federal Circuit Court of Australia for an order setting aside a statutory demand issued by McNeice, the debtor. The statutory demand was issued under section 459E of the Corporations Act 2001 (Cth) and related to a debt of $45,000 owed by McNeice to Wizcorp. The central issue before the court was whether McNeice had a genuine defence to the debt claimed and if the statutory demand was unfair or oppressive, as permitted under section 459G(2) of the Act.

The court considered the evidence provided by both parties and assessed whether McNeice had a genuine defence to the debt. It examined the terms of the underlying agreement between the parties and the circumstances leading to the debt. The court found that McNeice did not have a genuine defence to the debt and that the statutory demand was fair and not oppressive. The court emphasised the importance of ensuring that statutory demands are used appropriately and not as a means to harass or intimidate debtors. However, in this instance, the court concluded that the statutory demand was valid and appropriately issued.

Consequently, the court dismissed Wizcorp's application to set aside the statutory demand. The court found that McNeice was liable to pay the debt of $45,000, plus interest and costs. The court also noted that the case highlighted the need for creditors to carefully consider the implications of issuing a statutory demand and to ensure that they have a valid and reasonable basis for doing so.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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