290 Court may set aside statutory demand


The court may, on the application of the company, set aside a statutory demand.


The application must be—


made within 10 working days of the date of service of the demand; and


served on the creditor within 10 working days of the date of service of the demand.


No extension of time may be given for making or serving an application to have a statutory demand set aside, but, at the hearing of the application, the court may extend the time for compliance with the statutory demand.


The court may grant an application to set aside a statutory demand if it is satisfied that—


there is a substantial dispute whether or not the debt is owing or is due; or


the company appears to have a counterclaim, set-off, or cross-demand and the amount specified in the demand less the amount of the counterclaim, set-off, or cross-demand is less than the prescribed amount; or


the demand ought to be set aside on other grounds.


A demand must not be set aside by reason only of a defect or irregularity unless the court considers that substantial injustice would be caused if it were not set aside.


In subsection (5), defect includes a material misstatement of the amount due to the creditor and a material misdescription of the debt referred to in the demand.


An order under this section may be made subject to conditions.