In the Supreme Court of Queensland case Varandra Holdings Pty Ltd v Bevan (No 2) [2024] QSC 231, the court ruled on a costs application following Varandra Holdings' unsuccessful attempt to set aside a statutory demand from Adam John Bevan. The initial proceedings concerned a Share Sale and Purchase Agreement, under which Varandra Holdings failed to make the agreed payments. Bevan issued a statutory demand for the unpaid amount, which Varandra Holdings contested, citing a purported dispute over the debt and an offsetting claim, both of which the court deemed not genuine or bona fide. The court ordered Varandra Holdings to pay Bevan's costs on an indemnity basis, concluding that the company's case was futile and based on a constructed, not genuine, dispute. The court highlighted the applicant's acknowledgment of the debt and the absence of any substantial evidence to support its defence, despite previously accepting the debt's existence.
Full text: https://www.sclqld.org.au/caselaw/149260