Event and Time
Event Description
- On 29 June 2023, Bullseye Group Pty Ltd (“Bullseye”) filed an application for the winding up of SSKT Pty Ltd (“SSKT”) under section 459P of the Corporations Act 2001 (Cth), citing SSKT's failure to comply with a statutory demand for payment of $55,000 dated 19 May 2023.
Application and Claims
- Bullseye claimed that SSKT was presumed insolvent due to a statutory demand that was not responded to within the required period.
- SSKT sought to challenge this presumption of insolvency by arguing it is solvent and requested the court to allow it to oppose the winding-up application based on grounds it could have used to contest the demand.
Judicial Decisions
- The court noted that Bullseye met the procedural requirements set forth in the Corporations Act and applicable rules.
- On 29 August 2023, SSKT filed an interlocutory application against the winding-up application but later abandoned its stance to seek leave to contest the debt under section 459S.
- The judge determined that SSKT had not successfully rebutted the presumption of insolvency and dismissed Bullseye’s application.
Dispute Points and Legal Basis
Dispute Points
Bullseye's Claims:
- SSKT is presumed insolvent due to non-compliance with a statutory demand.
- Bullseye’s evidence supports the presumption of insolvency, pointing to a failure by SSKT to initiate a challenge within the statutory timeframe.
SSKT's Arguments:
- SSKT contended it is solvent and provided affidavits from various individuals claiming financial stability.
- SSKT argued that Bullseye’s claim for the full $55,000 is disputed, citing prior communications with Bullseye that allegedly indicated no fees would be charged.
- SSKT asserted that it took actions to demonstrate solvency, such as transferring funds into its account to quarantine for potential liabilities.