A claim for breach of warranty against a supplier does not genuinely dispute the demand debt where the contract has not been terminated; it is properly characterised as an offsetting claim under s459H. The test for genuineness of an offsetting claim places a heavier onus on the party seeking to maintain the statutory demand than the reciprocal of the genuine dispute test — the challenger must show the claim is frivolous, vexatious or merely colourable, not merely advance a plausible contention requiring further investigation. Statistical analysis of a plaintiff's own evidence may be used to test the genuineness of the quantification of an unliquidated offsetting claim.
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