CPR Solutions Mackay Pty Ltd v Zammit Earthmoving Pty Ltd [2020] QSC 165 (2020) 4 QR 624
SUPREME COURT OF QUEENSLAND
CITATION: CPR Solutions Mackay Pty Ltd v Zammit Earthmoving Pty
Ltd [2020] QSC 165
PARTIES: CPR SOLUTIONS MACKAY PTY LTD
ACN 166 773 271
(applicant)
v
ZAMMIT EARTHMOVING PTY LTD
ACN 124 851 501
(respondent)
FILE NO/S: SC No 17 of 2020
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT:
Supreme Court at Mackay
DELIVERED ON: 11 June 2020
DELIVERED AT: Rockhampton
HEARING DATE: 28 April 2020
JUDGE: Crow J
ORDER: 1. The application to set aside the statutory demand is
dismissed.
2. The parties are to file and serve submissions
regarding costs as follows:
a. respondent by close of business Friday 12
June 2020; and
b. applicant by close of business Tuesday 16
June 2020.
CATCHWORDS: CORPORATIONS – WINDING UP – WINDING UP IN
INSOLVENCY – STATUTORY DEMAND –
APPLICATION TO SET ASIDE DEMAND –
PROCEDURAL REQUIREMENTS – SERVICE OF
APPLICATION – where application to set aside statutory
demand filed within period for service – where the application
is stamped as received and a filing receipt issued by the registry
– where complete application is not provided to applicant for
a further twenty-one days - where unsealed copy of the
application, bearing no return date, file number, or ‘received’
stamp emailed to respondent’s solicitors within period of
service – where receipt for filing was emailed to respondent’s
solicitors within period for service – where complete
application to set aside statutory demand served outside period
of service - whether the application served was a copy for the
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purpose of s 459G of the Corporations Act 2001 (Cth) –
whether service had been properly effected
CORPORATIONS – WINDING UP – WINDING UP IN
INSOLVENCY – STATUTORY DEMAND –
APPLICATION TO SET ASIDE DEMAND –
PROCEDURAL REQUIREMENTS – OTHER MATTERS –
where the procedural rules regarding corporation’s
proceedings are set out in the Uniform Civil Procedure Rules
1999 (Qld) as the Corporations Proceedings Rules – where
registrar has duty to immediately affix a court seal, return date,
and matter number to filed applications - where s 15 of the
Covid-19 Emergency Response Act 2020 (Qld) empowers the
court to modify statutory time limits relating to a proceeding –
whether s 15 alters the duties of a registrar to immediately affix
a court seal, return date, and matter number to filed
applications - whether the alteration or suspension of
procedural requirements under the Corporations Proceedings
Rules can effect operation of Corporations Act 2001 (Cth)
Corporations Act 2001 (Cth), s 459G, s 459H, s 559E, s
1337B
COVID-19 Emergency Response Act 2020 (Qld), s 2, s 15
Uniform Civil Procedure Rules 1999 (Qld), r 26, r 964, r 967,
r 968, r 978, Schedule 1A
Ainsworth & Ors v Redd (1990) 19 NSWLR 78, cited
Benonyx Pty Ltd v Fetrona Pty Ltd [1999] NSWSC 181, cited
Chelring Pty Ltd v Coombs [2000] WASC 60, cited
Cooloola Dairys Pty Ltd v National Foods Milk Ltd (2004)
211 ALR 293; [2004] QSC 308, applied
Craneford Nominees Pty Ltd v VGC Co-operative Limited
[2012] SASC 74, applied
David Grant & Co Pty Ltd v Westpac Banking Corporation
(1995) 184 CLR 265; [1995] HCA 43, applied
Elite Motor Campers Australia v LeisurePort Pty Ltd (1996)
22 ACSR 235; [1996] FCA 951, cited
LJAW Enterprises Pty Ltd v RJK Enterprises Pty Ltd [2004]
QSC 134, followed
McArthur v Herald & Weekly Times Ltd & Ors (1957) QWN
16, cited
Robowash Pty Ltd v Robowash Finance Pty Ltd (2000) 158
FLR 338; [2000] WASCA 409, cited
Universal Trade Exchange Pty Ltd v Westpac Banking
Corporation (2002) 20 ACLC 1302, cited
COUNSEL: M T de Waard for the applicant.
S Kelly for the respondent
SOLICITORS: Taylors Solicitors for the applicant
Wilson Ryan Grose for the respondent
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Background
[1] The applicant, CPR Solutions Mackay Pty Ltd, came into existence upon registration
on 14 November 2013.1 The sole director and shareholder is Mr Darren Anthony
Haack. The sole director of the respondent, Zammit Earthmoving Pty Ltd, is Simon
Paul Zammit. Mr Haack and Mr Zammit had been friends for a number of years.2 In
paragraph 5 of his affidavit filed 22 April 2020, Mr Haack deposes:
“Since around 2009, the Respondent and I agreed that we would do
works for each other and generally not charge each other because the
value of the works would balance out over time. An example of this
arrangement was in 2012 when I constructed a concrete pad for the
Respondent at the Respondent’s request, this job involved
approximately 310 cubic metres of concrete being poured. At the time,
the ‘going rate’ for such a job, if I completed the work for any other
customer would have been around $1,300.00 to $1,500.00 per cubic
metre. By me doing those works and not charging the Respondent like
I normally would another customer, I estimate that I would have saved
the Respondent around 50% of the total cost of the job, that is saving
around $200,000.00.”
[2] Mr Haack deposes that from approximately 29 August 2016, the applicant provided
the respondent with a ‘Concrete Vibrator’, which has an estimated commercial-hire
rate of $80 per day inclusive of GST, and two ‘Brad finishing guns’, which have an
estimated commercial-hire rate of $40 each, per day inclusive of GST.3 Mr Haack
estimates that the respondent was provided with the equipment for approximately, as
of mid-April 2020, 1, 332 days and quantifies that the cost of hiring that equipment,
for that period at commercial rates, to be $213,120.4 That is, Mr Haack alleges, but
for the oral agreement between the applicant and respondent not to charge each other
for works performed, the respondent would be indebted to the applicant in the sum of
approximately $413,120. Mr Haack further alleges that the respondent is indebted to
the applicant for the sum of $84,312 for other works for which invoices have been
issued.5
[3] Mr Haack deposes that he received statements from time to time from the respondent
and in particular had received statements on 28 February 2014 (“2014 Statement”),
1 May 2015 (“2015 Statement”) and on or around 31 January 2019 (“2019
Statement”).6 The 2014 statement recorded a total debt owing of $8,030 as at 28
February 2014. The 2015 statement recorded a total of $29,114.25 owing as at 1 May
2015. The 2019 statement claimed a total of $146,439.28 as the ‘amount due’.
[4] Mr Haack deposes that the 2019 statement did not contain references to tax invoice
numbers 5939, 5943, 5944, 5945, 5946, 5947, 5948, 5949, 5950, 5951, and 5952.7
Exhibit DH-5,8 is a letter of demand from the solicitor for the respondent addressed
1 Affidavit of Darren Anthony Haack filed 17 March 2020.
2 Affidavit of Darren Anthony Haack filed 22 April 2020.
3 Affidavit of Darren Anthony Haack filed 22 April 2020.
4 Affidavit of Darren Anthony Haack filed 22 April 2020.
5 Affidavit of Darren Anthony Haack filed 22 April 2020.
6 Affidavit of Darren Anthony Haack filed 22 April 2020.
7 Affidavit of Darren Anthony Haack filed 22 April 2020.
8 Exhibit DH-5 to the affidavit of Darren Anthony Haack filed 17 March 2020.
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to the applicant, claiming a total indebtedness by the applicant to the respondent of
$329,804.81, less a setoff of $56,519. The letter of demand claims the net total debt
owed by the applicant to the respondent to be $273,285.81.
[5] The applicant, acting through its solicitors, sought copies of the invoices referred to
in the letter of demand, the invoices are provided in Exhibit DH-7.9 On the face of
the invoices there are obvious problems. Invoices 5938, 5940, 5941, and 5942 all pre-
date the coming into existence of the applicant company. Those invoices are
addressed to Darren and Nichole Haack and total almost $50,000.
[6] The next eight tax invoices are directed to the applicant company, but directed from
a different company; ‘Big Boys Toys Blast and Paint Pty Ltd’. The next 11 tax
invoices are issued by Zammit Earthmoving Pty Ltd to CPR Solutions Mackay Pty
Ltd, however all 11 pre-date 14 November 2013. The remaining 14 tax invoices
issued by the respondent to the applicant date from 30 May 2014 until 30 September
2015. Those documents were sent to the applicant’s solicitor on 8 November 2019.
[7] On 26 February 2020, the respondent served a creditor’s statutory demand (pursuant
to the s 559E of the Corporations Act 2001 (Cth) (“Corporations Act”)) on the
applicant for payment in the sum of $244,824.04.10 The statutory demand provided
for the address of service for the respondent as the offices of its solicitors. The
creditor’s statutory demand warned the applicant of the consequences of failure to
make an application to the court and serve copies of the application within the 21-day
statutory period following service.
[8] The applicant responded to the statutory demand by its solicitor’s letter of 16 March
2020,11 disputing the validity of the statutory demand on three grounds. Firstly, by
alleging that some of the works being claimed were not requested; secondly, that in
any event the respondent was indebted to the applicant for a greater sum of money;
and, thirdly, that some of the monies related to invoices in excess of 6 years ago,
which may be statute barred. The applicant’s solicitor’s letter raised a genuine dispute
in respect of the statutory demand and sought the cooperation of the respondent to
withdraw the statutory demand. The respondent declined to withdraw the statutory
demand.
[9] On 17 March 2020, (twentieth day following service of the statutory demand) the
applicant filed an application pursuant to ss 459G and 459H(1) of the Corporations
Act to set aside the statutory demand and a supporting affidavit.12 Immediately upon
filing the application and supporting affidavit, the applicant’s solicitor paid the
application fee of $2,812.90 and was provided with a Queensland Courts official
receipt for that sum in respect of the originating application for the corporations
matter “CPR Solutions Mackay -v- Zammut [sic] Earthmoving”.13 Mr Cunningham
deposes that the usual practice of the Mackay district registry, upon the filing of an
originating application, would be to seal the originating application and make it
available for collection on the same day.14 Despite the request of the applicant’s
9 Exhibit DH-7 to the affidavit of Darren Anthony Haack filed 17 March 2020.
10 Exhibit DH-2 to the affidavit of Darren Anthony Haack filed 17 March 2020.
11 Exhibit DH-3 to the affidavit of Darren Anthony Haack filed 17 March 2020.
12 Affidavit of Darren Anthony Haack filed 17 March 2020.
13 Exhibit RAC-3 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
14 Affidavit of Robert Andrew Cunningham filed 24 April 2020.
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solicitor for the return of the sealed application and supporting affidavit on the date
of filing (17 March 2020), that did not occur. Exhibit RAC-1 sets out the information
notices, news and practice directions issued from 13 March 2020 by the Supreme
Court and other courts in response to the COVID-19 pandemic.15
[10] Having filed the application and supporting affidavit on 17 March 2020, and having
not received the sealed copy from the court, the applicant’s solicitor emailed the
unmarked application, the supporting affidavit and the Queensland Courts receipt to
the solicitor for the respondent on the afternoon of 17 March 2020.16 The
respondent’s solicitor emailed advising they would not accept that formal service had
been effected until they received sealed copies of the application with the court
number and return date allocated.17
[11] In order to comply with what was understood to be the requirements of s 459G, the
applicant’s solicitor again attended at the district registry in Mackay on 18 March
2020,18 seeking the sealed copies, but the copies were not available due to alterations
to the registry staffing and practice, necessary to comply with COVID-19 restrictions.
[12] A third request for the documents was made on 1 April 2020, with the applicant
solicitor’s administrative assistant again attending the Registry seeking return of the
documents and then being advised by Registry staff to email the acting registrar.19
The applicant’s solicitor did email the acting registrar at 9:50am on 1 April 2020 and
was later advised in a phone call with the acting registrar that the application and
affidavit “was still not available…it has been stamped as received on 17 March 2020
but he couldn’t record a hearing date on it yet…”20
[13] The uncertainty as to the hearing dates for the Supreme Court at Mackay were
significantly affected by the pre-emptive restrictions put in place to combat COVID-
19. It was not until 6 April 2020 that a return date, being 28 April 2020, could be set
for the application. Accordingly, on 6 April 2020, the acting registrar placed the return
date on the application and advised the applicant that the application was ready for
collection.
Part 5.4 Corporations Law – Operates Harshly
[14] Section 459G of the Corporations Act provides:
“459G Company may apply
(1) A company may apply to the Court for an order setting
aside a statutory demand served on the company.
(2) An application may only be made within the statutory
period after the demand is so served.
15 Exhibit RAC-1 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
16 Exhibit RAC-3 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
17 Exhibit RAC-4 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
18 Affidavit of Robert Andrew Cunningham filed 24 April 2020; Affidavit of Darcy Brown filed 24 April
2020.
19 Affidavit of Hayley Kristine Giles filed 24 April 2020.
20 Exhibit RAC-6 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
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(3) An application is made in accordance with this section
only if, within that period:
(a) an affidavit supporting the application is filed with
the Court; and
(b) a copy of the application, and a copy of the
supporting affidavit, are served on the person who
served the demand on the company.”
[15] The leading decision upon the meaning and effect of s 459G is the decision of
Gummow J in David Grant & Co Pty Ltd v Westpac Banking Corporation (“David
Grant”).21 In David Grant, Gummow J (with whom Brennan CJ, Dawson, Gaudron
and McHugh JJ agreed) said:22
“In providing that an application to the court for an order setting
aside a statutory demand ‘may only’ be made within the twenty-
one day period there specified and that an application is made
in accordance with s 459G only if, within those twenty-one
days, a supporting affidavit is filed and a copy thereof and of
the applications are served, sub-ss (2) and (3) of s 459G attach
a limitation or condition upon the authority of the court to set
aside the demand. In this setting, the use in s 459G(2) of the
term ‘may’ does not give rise to the considerations which apply
where legislation confers upon a decision-maker an authority of
a discretionary kind and the issue is whether ‘may’ is used in a
facultative and permissive sense or an imperative sense. Here,
the phrase ‘[a]n application may only be made within twenty-
one days’ should be read as a whole. The force of the term ‘may
only’ is to define the jurisdiction of the court by imposing a
requirement as to time as an essential condition of the new right
conferred by s 459G. An integer or element of the right created
by s 459G is its exercise by application made within the time
specified. To adapt what was said by Isaacs J in The Crown v
McNeil, it is a condition of the gift in sub-s (1) of s 459G that
sub-s (2) be observed and, unless this is so, the gift can never
take effect. The same is true of sub-s (3).
…
These matters emphasise the importance of s 459G as an
integral part of the particular scheme established by Pt 5.4.
Paragraph (d) of s 1322(4) empowers the court to make an order
where the period concerned ended before the application to
extend it is made. An application to set aside the demand made
not within the twenty-one days specified in s 459G but within
another period allowed pursuant to an order under s 1322(4),
could not modify what otherwise would be the operation of the
definition of the ‘period for compliance’ with the statutory
demand set out in s 459F(2). That in turn would not change the
21 (1995) 184 CLR 265.
22 David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 at 276, 278, 279.
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answer to the question posed under s 459C(2) as to whether the
court must presume the company to be insolvent because it had,
within the period there specified, failed ‘as defined by s 459F’
to comply with the statutory demand.
…
Section 467A provides that an application under Pt 5.4 ‘must
not be dismissed’ merely because of ‘a defect or irregularity in
connection with the application’, unless the court is satisfied
that substantial injustice has been caused and this cannot
otherwise be remedied. However, s 467A cannot assist the
appellants. If an application for an order setting aside a statutory
demand has not been made within 21 days after service of the
demand, there is no application under Pt 5.4 before the court.
Therefore, there is no question of such an application being
dismissed because of a defect or irregularity in connection with
it. In Re J and E Holdings Pty Ltd, Sheller JA summed the
matter up as follows:
‘The position is quite simply that unless the Court has a
power to extend the time within which the application to
set aside the statutory demand can be made, the plaintiff
has no right to make it.’
Sheller JA also referred to various examples where it might be
thought that, upon the construction he preferred, which I also
have accepted, Pt 5.4 might operate harshly. In particular,
reference was made to the drastic commercial consequences
which may follow the issue of process for winding up and to the
inability of a company, which for good reason had been late in
filing or serving an application to set aside the statutory demand,
to prevent the issue of that winding up process. The damage to
the commercial reputation of the company in the meantime
might not be answered by the eventual success of the company
in defeating the application to wind it up as insolvent. Further,
default clauses in securities given by the company may have
been so drawn as not to take full account of the new statutory
scheme, with the consequence that floating charges may have
crystallised and the whole of the principal and interest become
payable.
(Footnotes omitted.)
[16] In David Grant the applications and affidavits required under s 459G were filed and
served after the 21-day period referred to in s 459G had expired.23
23 David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265 at 271.
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[17] Holmes J (as her Honour then was) in LJAW Enterprises Pty Ltd v RJK Enterprises
Pty Ltd,24 surveyed the application of David Grant in several interstate cases,25
including the appellant decision of Robowash.26
[18] Each of the cases as analysed by Holmes J showed different types of non-compliance
with the requirements of s 459G(3) of the Corporations Act: in Benonyx,27 the
application served lacked a return date; in Chelring,28 an incomplete copy of the
application was served, the copies served “did not bear the seal of the Supreme Court,
did not have the action number endorsed on it and did not bear the date and time for
the hearing of the application”;29 in Universal Trade,30 the application was served on
the respondent, but lacked a return date; in Robowash,31 the application was served
but the annexure to the supporting affidavit was incomplete.
[19] In LJAW, the application and supporting affidavit was filed on the twenty-first day
and an unsealed copy of the application bearing no return date or file number was
faxed to the respondent’s solicitor after 5pm on the twenty-first day. Holmes J said:32
“[9] I can see no reason not to adopt the reasoning of Santow J in
Benonyx. It is not necessary for me to embark on any attempt at
delineation of what is required to constitute a ‘copy’ for the
purposes of s 459G(3). It is patent here that the documents
served failed to reflect the original application in a matter of
substance: it did not contain the return date for the application.
It is not to the point that the requirement that the copy served
reflect the original, at least to that extent, may cause hardship.
Indeed, precisely that result occurred in Elite Motor Campers
Australia v LeisurePort Pty Ltd: delay by the court registry in
filing a document, presumably the application, prevented the
service of an application to set aside the statutory demand within
21 days. That was, observed Spender J, a regrettable
circumstance, but it could not ‘prevail over the absolute nature
of the requirements of s 459G of the Corporations Law’. I
conclude that a copy of the application was not served within 21
days of service of the demand, so that no application to set it
aside has been made within the meaning of s 459G (2).”
(Footnotes omitted.)
[20] Holmes J then analysed the Corporations Law Rules 2000 (Cth) (“Corporations Law
Rules”) and the Uniform Civil Procedure Rules 1999 (Qld) (“UCPR”). Holmes J
said:33
24 [2004] QSC 134.
25 Benonyx Pty Ltd v Fetrona Pty Ltd [1999] NSWSC 181; Chelring Pty Ltd v Coombs [2000] WASC
60; Universal Trade Exchange Pty Ltd v Westpac Banking Corporation (2002) 20 ACLC 1302.
26 Robowash Pty Ltd v Robowash Finance Pty Ltd (2000) 158 FLR 338.
27 Benonyx Pty Ltd v Fetrona Pty Ltd [1999] NSWSC 181.
28 Chelring Pty Ltd v Coombs [2000] WASC 60.
29 LJAW Enterprises Pty Ltd v RJK Enterprises Pty Ltd [2004] QSC 134 at [5].
30 Universal Trade Exchange Pty Ltd v Westpac Banking Corporation (2002) 20 ACLC 1302.
31 Robowash Pty Ltd v Robowash Finance Pty Ltd (2000) 158 FLR 338.
32 LJAW Enterprises Pty Ltd v RJK Enterprises Pty Ltd [2004] QSC 134 at [9].
33 LJAW Enterprises Pty Ltd v RJK Enterprises Pty Ltd [2004] QSC 134 at [17], [18].
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“[17] The view that service of a demand with an affidavit which fails
‘in a substantial way’ to meet the requirements of s 459E(3)
constitutes a defect in service rather than in the demand itself
was endorsed by Nicholson J in Delta Beta Pty Ltd v Everhard
Vissers. But I do not think that approach assists the applicant
here. If there were a defect in service, it might warrant an
application to set aside for ‘some other reason’ (in terms of s
459J(1)(b)), but it would hardly justify a declaration that the
demand itself was not valid.
[18] More fundamentally, I would not regard the failure to sign each
page of the affidavit as rendering it without effect. Rule 371(1)
of the Uniform Civil Procedure Rules provides that:
‘A failure to comply with these rules is an irregularity
and does not render a proceeding, a document, step taken
or order made in a proceeding, a nullity.’
As to the effect of such an irregularity, one must look to s 459J.
It is a code for dealing with defects in demands and in affidavits;
and such defects cannot ‘result in invalidity save and except as
provided in s 459J (1)’: Spencer Constructions Pty Ltd v G&M
Aldridge Pty Ltd. That leaves little room for the making of a
declaration of the kind sought here, independent of any
application to set aside.”
(Footnotes omitted.)
[21] LJAW and its preceding and succeeding cases were analysed by Chesterman J in
Cooloola Dairys Pty Ltd v National Foods Milk Ltd.34 In respect of the first demand
in the Cooloola, Chesterman J said:35
“[28] On 15 July 2004 the applicant filed and served its application.
The copy of the application actually served was defective in a
number of respects. The application number did not appear on
the document. The space for the insertion of the date on which
the application would be heard by the court was left blank. The
seal of the court had not been affixed to the document which did
not bear the Registrar’s signature. By letter dated 21 July 2004
the respondent’s solicitors notified the applicant’s solicitors of
these defects. On 23 July 2004 the respondent’s solicitors were
provided with a complete copy of the application.
…
[32] The facts in LJAW Enterprises Pty Ltd v RJK Enterprises Pty
Ltd [2004] QSC 134 are also relevantly identical. A copy of an
application to set aside a statutory demand, which omitted the
court’s seal, the return date and the action number, was served
on the respondent. Holmes J followed Benonyx, Chelring,
Universal Trade Exchange and Robowash to conclude that ‘the
34 (2004) 211 ALR 293.
35 Cooloola Dairys Pty Ltd v National Foods Milk Ltd (2004) 211 ALR 293 at 300, 301.
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documents served failed to reflect the original application in a
matter of substance: it did not contain the return date for the
application.’ see [9]. Her Honour pointed out, as had other
judges, that the requirement that the copy served reflect the
original may cause hardship. Indeed in some of the cases the
deficiency was not the fault of the applicant, although in this
case it was. The cases have also pointed out that the
requirements of s 459G are inflexible, depriving the court of a
discretion to overlook any defects in service.
[33] UCPR 26(7) emphasises the need for an application, ‘and any
copies of the application for service’, to specify the date set by
the court for hearing the application. In this case the respondent
was not disadvantaged by the defective copy of the application.
All four applications were served together and only one was
deficient. The other three applications contained notice of the
return date, which was the same. The respondent’s solicitors
correctly guessed that the return date for application SC No
6180 of 2004 was also the same. This, however, is not the test.
Moreover the guess might have been wrong.
[34] As with other line of authorities I should follow these cases
unless convinced that they are wrong. I do not think they are.
The opinion they express is a justifiable exposition of s 459G.
The copy of the application which the section requires to be
served must show that an application has been filed and when
the respondent is required to attend and answer it. It will not
perform these functions if it is not sealed and does not show the
action number allocated by the court. The inclusion of the return
date is obviously necessary.
[35] The authorities establish that the copy of the application served
on the respondent must be such as to show that it is a replication
of the application which has been filed in the court. To do that
it must show the action number given it by the court and it must
show the return date for the hearing of the application. It must,
also, I think, show the seal of the court to indicate that there are
curial proceedings on foot. The document in question did not
exhibit those attributes. It was not therefore a copy of the
application. The result is that the terms of s 459G(3) were not
complied with and the application must be dismissed with
costs.”
(Emphasis added.)
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[22] The approach of Holmes J in LJAW has been applied in several times across multiple
jurisdictions.36 In Craneford Nominees,37 the copy of the application that was served
omitted the registrar’s signature, as well as the filing date. Nonetheless, Stanley J
found that the copy served was “a sufficient copy of the application to satisfy
s 459G(3)(b)”. The facts of that case compelled Stanley J to examine what was meant
by the expression “a copy of the application”. His Honour said:
“14. At issue in this appeal is a question of statutory construction.
What is the meaning of the expression “a copy of the
application” in s 459G(3)(b) of the Act? The literal meaning of
the expression does little to elucidate the requirement of the
provision. The primary object of statutory construction is to
construe the relevant provision so that it is consistent with the
language and purpose of all the provisions in the statute. As the
High Court has frequently observed, the context, the general
purpose and policy of a provision and its consistency and
fairness is a surer guide to its meaning than the logic with which
it is constructed.
15. Section 459E of the Act enables a statutory demand to be served
on a company. Section 459F prescribes the period for
compliance with the statutory demand. Section 459G permits a
company served with a statutory demand to apply to the court
for an order setting aside the demand. It requires that such
application may only be made within 21 days after the demand
has been served. Importantly, s 459G(3) provides that
application is made only if, within those 21 days, an affidavit
supporting the application is filed with the court and a copy of
the application and a copy of the supporting affidavit are served
on the person who served the demand on the company.
16. Accordingly, it can be seen that the underlying purpose and
policy of s 459G(3) is to permit a company to dispute the debt
which constitutes the basis of the statutory demand only by
instituting proceedings for that purpose within a confined time
period and by alerting the person making the statutory demand,
by service on that person, of copies of the application and the
supporting affidavit, setting out the basis upon which the
company asserts it has a genuine dispute in relation to the debt.
17. The importance of the requirement for service was explained by
Young J in Howship Holdings Pty Ltd v Leslie, following
amongst other decisions, Hope v Hope, that service should be
understood in the terms stated by Lord Cranworth:
36 Accommodation West Pty Ltd v Innis [2009] WASC 337; Bolivar Rd Pty Ltd v Stefren Pty Ltd [2011]
SASC 93; Bache Business & Printing Services Pty Ltd v SA Hub Productions Pty Ltd [2009] SASC
369; Open Soft Australia Pty Ltd v Miller Street Pty Ltd [2011] FCA 653; TBK Beef Pty Ltd v Ark
Mangoes Pty Ltd [2012] NTSC 44; Adhesive Pro Pty Ltd v Blackrock Supplies Pty Ltd [2015] ACTSC
288; Melglow Pty Ltd v Ballygrowman Pty Ltd [2016] WASC 383; PCM Nominees (WA) Pty Ltd v
ACN 063 291 430 Pty Ltd [2017] FCA 848; In the matter of AXL Financial Pty Ltd [2019] NSWSC
867; Monsere Pty Ltd v RDM Nominees Pty Ltd [2019] SASC 126; Carbone v James McConvill and
Associates Pty Ltd (No 2) [2019] FCA 1594.
37 Craneford Nominees Pty Ltd v VGC Co-operative Limited [2012] SASC 74.
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‘The object of all service is of course only to give notice
to the party on whom it is made, so that he be made aware
of and may be able to resist that which is sought against
him; and when that has been substantially done, so that
the court may feel perfectly confident that service has
reached him, everything has been done that is required.’
18. The requirement in s 459G(3)(b) for service of a copy of the
application and the supporting affidavit on the person who
served the statutory demand exists to ensure that person has
proper notice that curial proceedings have been commenced by
the person subject to the statutory demand, the basis upon which
that person asserts that a genuine dispute exists in relation to the
debt constituting the statutory demand, and the date upon which
those proceedings are to be heard by the court.
19. Identification of Parliament’s purpose in imposing the
requirement for service of a copy of the application and the
supporting affidavit on the person who served the statutory
demand, does not require that the copy of the application
required to be served pursuant to s 459G(3)(b) is in all respects
an exact copy of the application filed in the court. To construe
the provision in that way is unnecessary for the purposes of
fulfilling the underlying purpose and policy of the Act. Worse
than that, to impose such a requirement might frustrate the
operation of the Act in circumstances, not unlike the present
case, where a party has served the copy of the application
returned to it by the court registry, ignorant of marks or
notations that may have been made on the filed document by the
registry staff, only to find that by reason of this fact alone, it has
failed to invoke the court’s jurisdiction to obtain a determination
of whether proper grounds exist to set aside the statutory
demand. In my view, this is not what Parliament intended by the
requirement to serve a copy of the application.
20. Moreover, to adopt a construction that requires service of an
exact replica of the document filed in court will, in some
circumstances, prove unworkable for the same reason. A party
cannot know precisely every mark or notation that may be made
on a document filed in court by the registry staff.”
(Emphasis added, footnotes omitted.)
[23] In Craneford Nominees,38 the court registry did return a copy of the application to the
applicant, however, it omitted both the registrar’s signature and the filing date.
Stanley J considered the provisions of the Supreme Court Civil Rules 2000 (SA) and
the Corporations Rules 2003 (SA) concluding that the omission of the registrar’s
signature and the filing date for the copy of the application duly constituted proper
service of a copy of the application. It must be appreciated the facts in the present
case differ significantly, as the registry did not issue or return a copy of the application
to the applicant at all until 6 April 2020.
38 Craneford Nominees Pty Ltd v VGC Co-operative Limited [2012] SASC 74.
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13
[24] What the cases show, particularly the Queensland decisions, is that satisfaction of the
requirement for service of a copy of an application under s 459G is to be determined
by close application of the applicable State’s court rules; in Queensland, the
Corporations Law Rules 2000 (Cth) and the UCPR.
[25] The rules for proceedings under the Corporations Act in Queensland are the
‘Corporations Proceeding Rules’ as set out in Schedule 1A of the UCPR. Relevantly,
r 1.7 of the Corporations Proceedings Rules provides:
“1.7 Substantial compliance with forms
(1) It is sufficient compliance with these rules in relation to
a document that is required to be in accordance with a
form if the document is substantially in accordance with
the form required or has only such variations as the
nature of the case requires.
(2) Without limiting subrule (1), the registrar must not reject
a document for filing only because a term used to
describe a party in the document differs from the term
used in these rules.
(3) This rule does not limit the Acts Interpretation Act 1954,
section 48A.”
[26] The Corporations Proceedings Rules go on to provide:39
“2.3 Fixing of hearing
On receiving an originating application or interlocutory
application, the registrar—
(a) must fix a time, date and place for hearing and endorse
those details on the originating application or
interlocutory application; and
(b) may seal a sufficient number of copies for service and
proof of service.”
[27] As Chesterman J pointed out in Cooloola Dairys,40 r 26(7) UCPR is also applicable
and provides:
”(7) The application, and any copies of the application for
service, must specify the day set for hearing the
application.”
[28] As Gummow J reflected in David Grant,41 Part 5.4 can operate harshly and in
particular, as noted by Chesterman J in Cooloola Dairys, the absence of an affixed
hearing date, in breach of r 26(7) of the UCPR, renders the application incomplete.
As Chesterman J said in Cooloola Dairys, a copy of the application served “must
show the application has been filed and when the respondent is required to attend and
39 Corporation Proceedings Rules r 2.3.
40 Cooloola Dairys Pty Ltd v National Foods Milk Ltd (2004) 211 ALR 293 at 301.
41 David Grant & Co Pty Ltd v Westpac Banking Corporation (1995) 184 CLR 265.
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14
answer it”42 as that reflects r 2.3 of the Corporations Proceedings Rules and r 26(7)
of the UCPR.
[29] It ought to be noted under r 2.3(b) of the Corporations Proceedings Rules, copies of
the application for service need not be sealed, but pursuant to r 2.3(a), the registrar
has a duty to fix a time, date, and place for the hearing and endorse those details on
the originating application.
[30] The orthodox application of the aforementioned authorities and in particular Cooloola
Dairys leads to the conclusion that a failure to include the date set for the hearing of
the application upon the copy served means that in terms of s 459G of the
Corporations Act, a copy of the application was not served within the 21 day time
limitation, with the consequential “harsh” result that court does not have jurisdiction
to entertain the application as s 459G(3) is not satisfied.
[31] As is made plain by Spender J in Elite Motor Campers Australia v LeisurePort Pty
Ltd,43 even if an applicant is not at fault and there is a delay in the court registry in
processing and filing the application and supporting affidavit, that circumstance,
however regrettably, “cannot prevail over the absolute nature of the requirements of
s 459G of the Corporations Law.”44
[32] In the present case, the facts are plain. The copy of the application served did not:
(a) show the action number given by the court;
(b) bear the seal of the court;
(c) a return date; or
(d) show a filing date.
Under the r 26(7) of the UCPR and r 2.3(b) of the Corporation Proceedings Rules
there is not an explicit requirement for the court seal to be affixed to a copy for
service. In any event, it is clear that a return date, as per r 2.3(a) of the Corporations
Proceedings Rules, must be affixed to the copies for service.45
[33] In the present case, it is common ground that the application had been filed on 17
March 2020, the dispute relates to the validity of service of the application on the
respondent.46 The receipt for filing of the application had been obtained and was
provided by the applicant to the respondent, however, the acting registrar did not fix
a time, date and place for the hearing and endorse those details on the originating
application upon receipt of the application as is required by r 2.3 of the Corporations
Proceedings Rules, the registrar was unable to do so because of the alterations to the
conduct of the registry and the court calendar which were a necessary consequence
of the COVID-19 pandemic. It is plain, therefore, that the application when served
did not comply with r 26(7) of the UCPR, as the application and service copy did not
specify the date set for hearing of the application.
42 Cooloola Dairys Pty Ltd v National Foods Milk Ltd (2004) 211 ALR 293 at 301.
43 (1996) 22 ACSR 235.
44 Elite Motor Campers Australia v LeisurePort Pty Ltd (1996) 22 ACSR 235 at 236.
45 Benonyx Pty Ltd v Fetrona Pty Ltd [1999] NSWSC 181 at [9]; Cooloola Dairys Pty Ltd v National
Foods Milk Ltd (2004) 211 ALR 293 at 301.
46 Paragraph 7(c) of the Respondent’s written submissions filed 28 April 2020.
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15
COVID-19 Emergency Response Act 2020 (Qld)
[34] As Mr Cunningham’s affidavits show, ordinarily in times not effected by COVID-19
restrictions, if an application and affidavits are filed in the Mackay district registry in
the morning, they will be made available on the same day. The applicant relies upon
the provisions of the COVID-19 Emergency Response Act 2020 (Qld), to argue that
it did effect proper service.
[35] Pursuant to s 4 of the Corporations (Commonwealth Powers) Act 2001 (Qld), the
State of Queensland referred its powers to make laws with respect to corporations to
the Commonwealth. Section 1337B(2) of the Corporations Act provides:
“1337B Jurisdiction of Federal Court and State and Territory
Supreme Courts
…
(2) Subject to section 9 of the Administrative Decisions
(Judicial Review) Act 1977, jurisdiction is conferred
on the Supreme Court of:
(a) each State; and
(b) the Capital Territory; and
(c) the Northern Territory;
with respect to civil matters arising under the Corporations
legislation.
…”
[36] As above, the procedural rules in respect to proceedings in Queensland are set out in
Schedule 1A of the UCPR, the Corporations Proceedings Rules.
[37] Paragraph 1.3 of the Corporations Proceedings Rules provides as follows:
“1.3 Application of these rules and other rules of the court
(1) Unless the court otherwise orders—
(a) these rules apply to a proceeding in the court under
the Corporations Act, or the ASIC Act, that is
commenced on or after the commencement of these
rules; and
(b) part 15A applies to a proceeding in the court under
the Cross-Border Insolvency Act 2008 (Cwlth).
(2) The other rules of the court apply, to the extent they are
relevant and not inconsistent with these rules—
(a) to a proceeding in the court under the Corporations
Act, or the ASIC Act, that is commenced on or after
the commencement of these rules; and
(b) to a proceeding in the court under the Cross-Border
Insolvency Act 2008 (Cwlth).
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16
(3) Unless the court otherwise orders, the rules applying to a
proceeding in the court under the Corporations Act, or
the ASIC Act, as in force immediately before the
commencement of these rules, continue to apply to a
proceeding under the Corporations Act, or the ASIC Act,
that was commenced before the commencement of these
rules.
Note—
Under the Acts Interpretation Act 1954, section 7,
a reference to the Corporations Act includes a
reference to the Corporations Regulations.”
[38] Therefore, the procedural rules which apply to the Supreme Court of Queensland, in
exercising its jurisdiction with regard to corporations, are the Corporation
Proceedings Rules which are set out in Schedule 1A of the UCPR and any other
consistent rules of the UCPR. Pursuant to s 7 of the Acts Interpretation Act 1954
(Qld), a reference to an Act includes a reference to statutory inference made or in
force under the law or a provision. The UCPR is a statutory instrument made under
s 85 of the Supreme Court of Queensland Act 1991 (Qld); accordingly, the UCPR and
the Corporations Proceedings Rules are considered an Act for the purpose of s 7.
[39] On 23 April 2020, the COVID-19 Emergency Response Act 2020 (Qld) (Emergency
Response Act”) received assent. Section 2 of the Act provides:
“2 Main purposes
The main purposes of this Act are—
(a) to protect the health, safety and welfare of persons
affected by the COVID-19 emergency; and
(b) to facilitate the continuance of public administration,
judicial process, small business and other activities
disrupted by the COVID-19 emergency, including by
easing regulatory requirements and establishing an office
of small business commissioner; and
(c) to provide for matters related to residential, retail and
prescribed leases affected by the COVID-19 emergency;
and
(d) to support the Queensland rental sector during the
COVID-19 emergency period.”
[40] Section 15 of the Emergency Response Act provides:
“15 Regulation-making power, and power of court, to modify
statutory time limit relating to proceeding
(1) This section applies if an Act provides for a period within
which an entity is authorised or required to do a thing
relating to a proceeding, including, for example—
(a) start, or take a step in, or hear, a proceeding; or
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17
(b) make a complaint in relation to an offence; or
(c) present an indictment for an offence; or
(d) appeal, or give notice of appeal, or notice of
application for leave to appeal; or
(e) make a decision; or
(f) give reasons for a decision.
(2) The period may be modified on the ground the
modification is necessary for a purpose of this Act.
(3) The power to modify the period under subsection (2)
may be exercised—
(a) if the modification applies generally or to particular
classes of persons or matters—by a regulation
made under the Act providing for the period; or
(b) if the modification applies in relation to a particular
proceeding—by a court having jurisdiction relating
to the proceeding giving each party to the
proceeding a notice stating the modification and
the reasons for the modification.
(4) If a regulation under subsection (3)(a) extends a period,
the period may be extended only for a period that ends
on or before 31 December 2020.
(5) The power to modify the period under subsection (2)
may be exercised under subsection (3)(b) on the court’s
own initiative or on the application of a party to the
proceeding.
(6) A regulation made under subsection (3)(a) may have
retrospective operation to a day not earlier than 19 March
2020.
(7) This section does not limit any other power of the court
to modify a period, including, for example, a power
under the Supreme Court of Queensland Act 1991.
(8) To remove any doubt, it is declared that this section
applies in relation to the following provisions—
(a) the Criminal Code, sections 590 and 671;
(b) the Dangerous Prisoners (Sexual Offenders) Act
2003, part 4;
(c) the Justices Act 1886, section 222;
(d) the Limitation of Actions Act 1974, parts 2 and 3.
(9) A reference in this section to a period within which an
entity is authorised or required to do a thing relating to a
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18
proceeding includes a reference to any expression of time
provided for under a provision for doing the thing.
Examples of an expression of time in a provision—
• a provision requiring a person to do a thing
immediately
• a provision requiring a person to do a thing
promptly
(10) In this section—
court includes—
(a) a tribunal; and
(b) an entity having a judicial or quasi-judicial
function.”
(Emphasis added.)
[41] The applicant argues that s 15 of the Emergency Response Act assists it in overcoming
the difficulties which beset its compliance with s 459G of the Corporations Act. The
applicant argues that s 15(1) of the Emergency Response Act is engaged as the UCPR
and the Corporations Proceedings Rules are defined as an Act, and provide for a
period within “which an entity is authorised or required to do a thing”. Rule 2.3 of
the Corporations Proceedings Rules requires the registrar to act “immediately”,
although there is no specification as to a period of time in which one may act
“immediately”, nonetheless the applicant relies on s 15(9) of the Emergency Response
Act to overcome lack of reference in r 2.3 to a period of time.
[42] Whilst I accept that the requirements of s 15(1) of the Emergency Response Act are
satisfied, namely, there is an Act, the UCPR and Corporations Proceedings Rules,
which provide for a period, the immediate fixing of the time, date and place for the
hearing of an application pursuant to r 2.3 (with the extended definition of period in
s 15(9)), the difficulty remains for the applicant that the satisfaction of s 15(1)
provides a discretion to modify or extend a time period under a Queensland Act.
[43] Logically, therefore, because of the difficulties caused by COVID-19, even if the
deputy registrar was relieved of the obligation to immediately upon receipt of the
application, fix the time, date, and place for the hearing of the application, all s 15(2)
allows the court to do, by provision of notice, is to extend that period for fixing the
date, time and place of the hearing of the application. Section 15(2) does not, and as
State legislation, cannot, modify or effect the strict and “harsh” requirements under
s 459G of the Corporations Act for the application and supporting affidavit to be filed
and copies served within the 21-day statutory time limit.
[44] I further note that the Coronavirus Economic Response Package Omnibus Act 2020
(Cth) extends the 21-day time period under s 459G of the Corporations Act from
21 days to 6 months. That affords the applicant no comfort in the present case, as the
extension only applies to statutory demands served on or after the date of
commencement of the Act, that is, 25 March 2020. In the present case, the
respondent’s statutory demand was served on 26 February 2020.
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19
[45] As Stanley J said in Craneford Nominees what is “at issue…is the meaning of the
expression ‘a copy of an application’ in s 459G(3)(b)”. The application and affidavits
were filed by the acting registrar, however, the acting registrar did not fix a time, date
and place for the hearing and endorse those details upon receipt of the application.47
A return date could not be set due to altered court arrangements as a consequence of
“the Coronavirus situation”.48
[46] The detail of what was filed in court may also be observed from Exhibit RAC-6,49
namely the application filed in court had been date stamped as received on 17 March
2020. The return date of the application, which would appear to have been written
originally as 26 April 2020 at 9:00am, which was altered to 28 April 2020 and a
further stamp placed upon the alteration from 26 to 28 April 2020 (to indicate the
alteration had been made by the registrar of the district registry at Mackay).
[47] The application is document 1 on the court file and does not bear a matter number.
Furthermore, document 2 on the court file is the affidavit of Darren Anthony Haack,
which bears the same date stamp as filed in the Supreme Court of Queensland at
Mackay on 17 March 2020. With reference to the information provided in exhibit
RAC-6, I conclude that when the originating application was received by the court on
17 March 2020, it was date stamped as filed on 17 March 2020 and the second stamp
(the receipt stamp) was applied stating the filing date as 17 March 2020, the fee at
$2,812.90 and receipt number of 4865640 was applied, together with the initials of
the registry officer.
[48] Rule 964 of the UCPR requires the registrar to keep a separate file for each proceeding
and give the proceeding a distinguishing number. For the Supreme Court, the letter S,
followed by the court serial number for the proceeding at the top right-hand corner of
the first page. In this case, the registrar did not record the serial number upon the
application.
[49] Rule 967 provides that a document may be filed in the registry by delivery to the
registry personally.
[50] Rule 968 of the UCPR provides as follows:
“968 Filing documents personally
(1) This rule applies to a document filed by personal delivery
to the registry.
(2) However, this rule does not apply to an exhibit or another
document that does not require the court’s seal on it.
(3) The registrar may refuse to file the document if the
document does not comply with these rules or may not
otherwise be filed.
(4) The document is taken to be filed when the registrar
records the date of filing on the document and stamps the
seal of the court on it.
47 See Exhibit RAC-6 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
48 Exhibit RAC-6 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
49 Exhibit RAC-6 to the affidavit of Robert Andrew Cunningham filed 24 April 2020.
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20
(5) Any prescribed fee for filing the document must be paid
when the document is given to the registrar.”
[51] Prior to its amendment by SL 127 of 2018 reg 65 operational from 24 August 2019,
r 968 provided as follows:
“968 Filing documents personally
(1) This rule applies to a document filed by personal delivery
to the registry.
(2) However, this rule does not apply to an exhibit or another
document that does not require the court’s seal on it.
(3) The registrar may record the document and stamp the
seal of the court on it or, if the document does not comply
with these rules or may not otherwise be filed, refuse to
file the document.
(4) The document is filed when the registrar records the
document and stamps the seal of the court on it.”
[52] It may be observed from the alteration to r 968(4), formerly a document was not filed
until the registrar had recorded the document and stamped the seal of the court on it,
whereas current r 968(4) is a deeming provision with respect to filing.
[53] Formerly under r 968(4) of the UCPR, even though a document may have been
physically filed, that is placed in the court file, it was not considered filed until the
registrar had recorded the document and stamped the seal of the court on it. The act
of recording the document was best taken to mean the act of the registrar placing the
filing stamp on the document indicating the date and the court in which the document
was received.
[54] The current r 968(4) differs from the former r 968(4) in that it deems a document to
be filed regardless of when it is in fact placed on the file if the registrar has recorded
the date of filing on the document and stamped the seal of the court on it. In the
present case, as stated above, the document was received by the registrar, the
document was recorded by the registrar by placing the date stamp and the filing
receipt stamp upon it and the document was filed. The document, however, was not
issued.
[55] Rule 978 of the UCPR provides:
“978 Issue of documents
(1) Each document issued by the court, other than an
electronically issued document, must be signed by the
appropriate officer for the court and stamped with the
court seal.
(2) If a document to be stamped with the court seal has 2 or
more pages, only 1 page of the document is required to
be stamped.”
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21
[56] In the present case as explained above, the document was not issued as the acting
registrar was not able to secure a return date for the hearing of the application.
Accordingly, when the originating application was filed it contained the date stamp
and receipt stamp as indicated. It did not contained the return date, the seal of the
court or the matter number as required by the rules.
[57] The application that was served on the respondent bore not stamps at all. The issue
therefore is whether, for the purposes of s 459G(3)(b) of the Corporations Act, the
application that was served, absent the date and receipt stamp of 17 March 2020, was
a copy of the application.
[58] Stanley J is not the first judge to reflect that the words “a copy of” do not mean an
“exact replica”. In McArthur v Herald & Weekly Times Ltd & Ors,50 O’Hagan J said:
“I do not say that every service of a copy which is not in every respect a
complete replica of the original is a nullity. But a copy which omits such an
essential part of the summons as the requirement to enter an appearance within
a prescribed time as limited by the Rules, is, in my opinion, a nullity.”
[59] In Ainsworth & Ors v Redd (1990) 19 NSWLR 78, Kirby A-CJ (as his Honour then
was) surveyed the development of personal service of the originating process from
“the old requirement that the person to be served should be touched by the document”
through to amendments of the Supreme Court Rules 1970 (NSW) allowing for the
originating process to be left with a person to be served of “leaving a copy of the
document for the person or by putting the copy down in his presence and telling him
the nature of the document.”
[60] His Honour said “…It is now commonly accepted in Australian courts that the
approach to the task of construction of legislation (including subordinate legislation
such as Supreme Court Rules) should be purposive…”51 His Honour continued “At
least at the outset of litigation, the rule-maker has determined that the recipient of the
process of the court should be left in such a position that the document will ordinarily
come to his personal notice of the party served.”52
[61] His Honour then said in respect of the NSW rule requiring personal service:53
“The relevant object is to ensure that originating process in the form of
a document will come to the notice of the person named as a party so
that any later default in defending his or her position (for example, by
entering an appearance and being represented before the Court) is fairly
to be attributed to a decision of that person. The obligation of personal
service thereby removes the risk that the jurisdiction of the Court over
the person named will be asserted, conclusions reached and orders made,
without a proper initial opportunity being given to the person named to
appear and defend the proceedings.”
(Footnotes omitted.)
50 (1957) QWN 16.
51 Ainsworth & Ors v Redd (1990) 19 NSWLR 78 at 83.
52 Ainsworth & Ors v Redd (1990) 19 NSWLR 78 at 83.
53 Ainsworth & Ors v Redd (1990) 19 NSWLR 78 at 85.
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22
[62] I consider that the analysis of Stanley J in Craneford Nominees is correct, in that the:
“16. [U]nderlying purpose and policy of s 459G(3) is to permit a
company to dispute the debt which constitutes the basis of the
statutory demand only by instituting proceedings for that
purpose within a confined time period and by alerting the person
making the statutory demand, by service on that person, of
copies of the application and the supporting affidavit, setting out
the basis upon which the company asserts it has a genuine
dispute in relation to the debt.”
[63] In the present case, particularly as the receipt proving filing of the application had
been served, there can be no question that the respondent was alerted that there was
a genuine dispute in relation to the debt. The receipt for filing provides the same
information as the date stamp, which was recorded upon the application as filed in
Registry. The regrettable inability of the registrar to comply with r 2.3 of the
Corporations Proceedings Rules and rr 26(7) and 964 of the UCPR in the present
case assists the applicant and not the respondent. The determination of what properly
constitutes a “copy of the application” within the meaning of s 459G(3)(b) is resolved
solely upon a comparison of the text of the application that was in fact filed on
17 March 2020 and the document served by the applicant purporting to be a copy of
the application.
[64] The purpose of s 459G(3)(b) of the Corporations Act is to ensure that a person who
was served a statutory demand was provided with notice of an application to set aside
the statutory demand, and this is to be achieved by providing a “copy of the
application”. In the present case, the registrar did not return a service copy to the
applicant or issue a copy of the application.54 Whilst it is not necessary for the
document served to be “an exact replica”, the document served was different from
the document filed as it omitted the date of filing stamp and the receipt stamp. As the
document did not have a matter number, a court seal, a registrar’s signature or a return
date, the only indication on the document that it had been filed in the Registry was
the inclusion of the date and receipt stamps. Absent the date and receipt stamps there
was nothing on the document to show that it had been filed and that curial proceedings
had commenced. Although, the service of the court receipt provided the same
information, that is not the test. The test is simply whether the document that was
served was a sufficient copy of what was filed for the purpose of s 459G(3) of the
Corporations Act. The document which was served was not a sufficient copy as it
omitted the date stamp and the receipt stamp, which were the only indication that the
application had in fact been filed and a curial proceedings had commenced.
[65] The application is dismissed.
54 The definition of “issued” being removed from Schedule 3 of the Uniform Civil Procedure Rules 1999
(Qld).
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Official source: https://www.sclqld.org.au/caselaw/QSC/2020/165