Creditor’s statutory demands are regularly issued by creditors demanding payment of multiple invoices. Creditors must ensure that all invoices are due and payable prior to issuing a creditor’s statutory demand.

This principle was discussed in the recent case of In the matter of Granite Power Limited (administrators appointed).

In Granite, the creditor sought payment of four invoices for outstanding income contributions including an invoice for an unpaid commission payment. The commissions invoice was the largest of the four invoices.

Granite disputed the commission invoice and the creditor conceded that the invoice was generated without proper basis. Once the commission invoice was removed from the balance owing under statutory demand, Granite argued that a substantial injustice had occurred.

Granite were successful in their application to set aside the creditor’s statutory demand. Whether a debt is due and payable should be the primary consideration of creditors prior to issuing a creditor’s statutory demand. The decision in Granite is reflective of this position.