A debt arising from an adjudication determination under the Construction Contracts Act 2004 (WA) (and by analogy, equivalent interstate legislation) is a debt due and payable that can be enforced via statutory demand and winding up proceedings. A debtor cannot set aside such a statutory demand by asserting a 'genuine dispute' or 'offsetting claim' based merely on a contention that the amounts determined are not 'in truth' due or that the creditor was not contractually entitled to the amounts. The NSW decisions in Plus 55 and Ettamogah holding otherwise are plainly wrong. However, a genuine offsetting claim arising from separate transactions (e.g., damages for defective work) may still reduce the amount of the demand, provided it is supported by sufficient evidence beyond a mere statement of claim.
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