It is not an abuse of process for a creditor to serve a statutory demand and proceed with winding up proceedings under Part 5.4 of the Corporations Law even where the creditor knows the debt is disputed, provided the creditor's purpose is to collect the debt or have the company wound up. A company that fails to apply to set aside a statutory demand within the 21-day period under s 459G cannot oppose the winding up on the ground that the debt is disputed unless it obtains leave under s 459S, which requires the ground to be material to proving solvency. The court's inherent power to prevent abuse of process is significantly circumscribed by the Part 5.4 scheme. However, supervening events that could not have been raised within the 21-day period (such as subsequent payment or a subsequent judgment establishing non-indebtedness) may fall outside s 459S.
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