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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22310
Experience:  37 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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The Applicant in an application to set aside a Statutory

Customer Question

The Applicant in an application for Order to set aside a Statutory Demand, might state that the debt is in substantial dispute. At the subsequent hearing, does the Judge simply accept the Applicant's word for this situation and allow that there is a substantial dispute, or does the Judge establish the veracity of the statement?
Submitted: 9 months ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 9 months ago.

The applicant has to file an affidavit in support of the application to set aside the statutory demand. The respondent then has an opportunity to file in reply. The judge will then have a hearing where he will assess the evidence on these documents and any legal submissions in support as to the legal tests. In my experience this can be a robust approach, where dubious allegations of a factual dispute usually are rejected

Customer: replied 9 months ago.
Thank you Chris. But I have heard that a Judge in the High Court might not even examine the "Substantial Dispute" claim in the Application to set aside Statutory Demand because he may not want to rule as to whether there is a dispute at this time. Thus it seems that as a defence it is sufficient to simply claim there is a dispute to get an order to set the application aside. You say a Judge will pick up the question of substantial dispute and rule on it, however? How can you be sure? Thank you
Expert:  Chris The Lawyer replied 9 months ago.

The test is not whether there is a dispute, but whether there is a real dispute. My experience of arguing a reasonable number of the applications is that the evidence is carefully examined, and that it must be credible and well presented to permit setting aside of the demand. It is certainly not automatic.

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