A recent judgment of Chief Justice Blow in ARL2 Pty Ltd v Flex Realty Pty Ltd [2024] TASSC 5 is a reminder of the crucial role that compelling evidence plays in rebutting a presumption of insolvency.
The court ultimately dismissed the plaintiff’s winding up application on the ground of insolvency based on the defendant’s failure to comply with a creditor’s statutory demand. The court held that the defendant met its burden of proving it was solvent.
Background
The plaintiff, ARL2 Pty Ltd (ARL2), sold its rent roll business to the defendant, Flex Realty Pty Ltd (Flex Realty), for $185,000 payable in instalments.
A dispute arose as to how much, if any, of the final component of the purchase price was payable by Flex Realty.
ARL2 served a…
Read the full article at: https://www.landers.com.au/legal-insights-news/navigating-statutory-demands-and-presumption-of-insolvency