The Court set aside a statutory demand for $500,000 under s 459H(1)(a), finding a genuine dispute as to the existence of the debt where the legal basis for the claimed debt was not clearly articulated by the creditor (being variously characterised as money had and received or a tripartite contract), and where the debtor company had a non-frivolous defence that a third party (Mr Carusi/Telbest) had authority under the parties' informal arrangements to direct the use of the funds. The Court emphasised that where the true legal relationship between the parties cannot be deciphered on the evidence, and the defence has some prospect of success that is not so low as to lack bona fides, the dispute is genuine and the debt is not amenable to a statutory demand.
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