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ARTICLE · 04 OCTOBER 2021

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Statutory demands and commercial reasonableness?

Gilchrist Connell
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Creditors should consider whether issuing a statutory demand is the appropriate avenue to pursue payment of a debt.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Hannah Griffiths
Hannah Griffiths
Alexandria Pearman
Alexandria Pearman
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The two step review process required to issue a compliant statutory demand was recently confirmed by the Supreme Court of New South Wales in in the matter of Matrix Group Co Pty Ltd [2021] NSWSC 1042.

TPS Group Services Pty Limited (TPS), as a building subcontractor to Matrix Group Pty Limited (Matrix), claimed that, after issuing an invoice for works completed in the amount of $46,485.45, the parties had agreed to settle the invoice for the amount of $40,000, such agreement being supported by a payment schedule issued under section 14 of the Building & Construction Industry Security of Payment Act 1999 (NSW). Subsequent discussions between TPS and Matrix reflected that Matrix would assess TPS's claim as $40,000 on "two conditions", being that TPS returned to site as soon as possible and that TPS remove the payment default against Matrix (Agreement).

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