Event and Time
Event Description
This case involved a statutory demand issued in a corporate winding-up proceeding. The core issues revolved around the validity of the statutory demand due to the absence of an affidavit for verification and the nature of post-judgment interest as it pertains to the demand's legitimacy.
Application and Claims
The plaintiff applied to set aside a statutory demand issued against them by the defendant. The statutory demand was challenged on the grounds that:
- It was not verified by an affidavit.
- Part of the claim included post-judgment interest, which was disputed regarding its classification as a "judgment debt."
The plaintiff argued that:
- The absence of an affidavit invalidated the statutory demand.
- The post-judgment interest should not be classified as a judgment debt, particularly in relation to the applicable legal principles in New South Wales versus Victoria.
The defendant's claims centered around:
- The validity of the statutory demand despite the lack of an affidavit.
- The entitlement to subsequently claim post-judgment interest as part of the debt owed.
Judicial Decisions
In response to the applications: 1. The court determined that the statutory demand dated 10 May 2021 was to be set aside in both proceedings (2021/155911 and 2021/155912). 2. Additionally, the defendant was ordered to pay the plaintiff’s costs of the application on an indemnity basis, emphasizing the improper issuance of the statutory demand.
Dispute Points and Legal Basis
Dispute Points
- Verification of Demand: The plaintiff contended that the statutory demand must be verified by an affidavit, while the defendant argued the legitimacy of the statutory demand despite this omission.