A statutory demand issued for the purpose of pressuring payment of a debt known to be genuinely disputed, rather than for the legitimate purpose of establishing insolvency, constitutes an abuse of process. The test for a genuine dispute on an application to set aside a statutory demand is whether there is a plausible contention requiring investigation, and the court's function is limited to determining whether such a dispute exists — not to resolve it. Indemnity costs may be awarded against a creditor who issues a statutory demand in such circumstances.
The full text is available to signed-in members, including the 60 later cases that cite this judgment.
7 of the 60 citing cases carry a classified treatment. How each court treated it is available to signed-in members.