To establish a genuine offsetting claim based on breach of s 420A(1)(b) of the Corporations Act in a statutory demand application, the debtor must identify specific negligence or default in the sale process; evidence that the property was sold at an undervalue (even supported by a subsequent expert valuation) is insufficient without an attack on the process itself. A subsequent valuation criticising the controller's valuation cannot retrospectively impose on the controller awareness of errors of which it was not shown to be aware. The mere pleading of a defence and counterclaim in related guarantee proceedings does not constitute 'some other reason' under s 459J(1)(b) where the offsetting claim threshold has not been met.
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