Resisting a Statutory Demand
If a company wishes to set aside a Statutory Demand it must apply to court within the 21 days of service of the demand and it must serve the supporting affidavit on the person who made the Statutory Demand.
The supporting affidavit should state the grounds upon which the application is made rather than simply making the assertion that the debt is not due. If the affidavit is insufficient, it cannot be supplemented by a late affidavit served outside the 21 day period.
A Statutory Demand will only be set aside if;
- The debt is subject to a genuine dispute
- The amount in fact owed is less than the statutory minimum
- There is a defect in the Statutory Demand that would cause substantial injustice if not set aside
- There is some other reason why it should be set aside
A Statutory Demand which has a defect can only be set aside where it causes substantial injustice. It will not be set aside if the Statutory Demand is within the terms of the Act and the defect is only a minor irregularity or misstatement.
