Authority now favours a less strict view of the scope of the Graywinter principle. A recent example of this can be seen in Pravenkav Group Pty Ltd v Diploma Construction (WA) Pty Ltd [No 3] where a company challenged a statutory demand on the basis that it had an offsetting claim. A question arose as to whether, in order to comply with s 459G of the Corporations Act 2001 (Cth) under the Graywinter principle, the affidavit supporting the application to set aside the statutory demand was required to contain evidence sufficient to permit the court to quantify the amount of the offsetting claim. The Court of Appeal of Western Australia held that this was not required. I have written a paper about the case. Read the paper here.
