The Suva High Court has annulled a statutory demand of $1,497,213.21 from Yanjian Group (Fiji) against Great Han International Co Pte Ltd due to a legitimate dispute regarding the amount owed. Justice Savenaca Banuve of the High Court concluded that Great Han has a valid offsetting claim. The company’s argument hinged on their assertion that the debt was settled through the transfer of property titles covering 3.0558 hectares in Sabata, Nadroga/Navosa. This transfer was confirmed by Yanjian’s business manager on February 19, 2024.
This legal conflict originated last year when Yanjian demanded payment for unpaid progress claims related to several construction management projects. Great Han opposed this demand in May, arguing the debt was nullified following the property transfer. The court’s decision hinged on whether a genuine dispute or a valid offsetting claim existed, which was found credible enough by Great Han to justify a court hearing. Consequently, the statutory demand was dismissed, and related winding-up proceedings were paused. Additionally, Yanjian was awarded $1,500 in costs, payable within a week.
The ruling underscores the complexity and dynamic nature of legal disputes involving construction contracts and debt assertions. In similar previous cases, Great Han has faced legal challenges related to construction projects, as seen with environmental compliance issues that reached the Environment Tribunal and resulted in a complex legal procedure involving multiple appeals and reviews. This recurring theme highlights the intricate balance between contract obligations and other facets like environmental regulations and legal propriety.
This decision is an example of the court’s role in scrutinizing statutory demands and the importance of resolving disputes over alleged debts, debt offsets, and asset transfers judiciously. It also stresses the necessity for clear communication, documentation, and transparency between contracting parties to avoid prolonged legal battles.
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