An application by Coolabah Wines to wind up Warburn Estate has been dismissed in the Victorian Supreme Court.
Coolabah Wines lodged an application to wind up Warburn Estate citing a debt of $582,223.46.
It was heard in the Supreme Court's commercial division that Warburn had paid $592,000 prior to a hearing.
But on May 2, Divas Beverages, the parent company of Coolabah Wines alleged Warburn Estate owed the company $15,230,297.64, with Divas' lawyers filing notice with the court.
Just two days later, Warburn Estate and the company entered into an agreement in relation to contracts between the two which found there could be further unpaid entitlements.
This led to Divas Beverages issuing a statutory demand to be issued for a payment of over $380,540.04, described as 'monies due and owing', allegedly for goods and services.
However, the court was told during a hearing on May 17 they were not particularised in Divas Beverages' affidavit.
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Warburn Estate objected to an application of substitution, arguing Divas Beverages was not the creditor of the business at the time it was filed, with Divas having filled the shoes of Coolabah shortly after.
During the hearing, an argument was raised that the plaintiff had not proven the debts existed, which Judicial Registrar Claire Gitsham asserted made it "impossible for the defendant to respond to the action of substitution".
"I'm not of the view the deed of assignment is sufficient for me to be satisfied that Divas Beverages was a creditor of Warburn Estate at the time this application commenced," Ms Gitsham said.
"There is a question as to what debts were assigned at the time of the deed of assignment, mainly after the primary debt owed to Coolabah had been paid by Warburn and only two days after Coolabah then entered into an agreement with Warburn to resolve any disputes over outstanding monies."
In the hearing, Divas Beverages sought an adjournment to make further enquiries about matters raised, but this was refused.
Ms Gitsham refused Coolabah's application and as a result, Divas Beverages will need to foot the cost of its application on an indemnity basis to Warburn Estate.
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