Is it OK if you are just a bit late applying to set aside a statutory demand? Which case won?

The Facts

Creditor serves statutory demand on company owing substantial sum

In late June 2017, a government department (the 'creditor') instructed a process server to serve a statutory demand on a company (the 'debtor company'). The creditor alleged that the debtor company owed it nearly half a million dollars.

A statutory demand is a formal demand for payment of outstanding debts of $2000 or more made under Section 459G of the Corporations Act 2001 (Cth). The Act prescribes that a debtor company has 21 days to comply with the demand or apply to the court for an order that the demand be set aside. Failure to do either of those things creates a legal presumption that the company is insolvent and means that the creditor can apply to wind the debtor company up in insolvency.