Hanave Pty Ltd v Nahas Construction (NSW) Pty Limited [2012] NSWSC 888

Building and Construction Industry Security of Payment Act 1999 (NSW), Division 2A – Plaintiff (principal contractor) sought to quash adjudication determination obtained by the first defendant (respondent) and paid monies into Court pending its challenge - thereafter the second defendant (claimant), a creditor of the first defendant, which had itself obtained an adjudication determination against the first defendant served on the plaintiff a payment holding request under s 26A of the Act - later the plaintiff's challenge failed and the monies in Court were paid out to the first defendant discharging the plaintiff's debt to the first defendant - the second defendant contended that the plaintiff had discharged its obligation as principal contractor to pay money under a contract to the first defendant as respondent in contravention of a requirement under Division 2A of the Act and was jointly and severally liable for the first defendant's debt to the second defendant - HELD - no contravention of the division because the payment out of Court was not discharge of the principal contractor's obligation as contemplated by s 26C(1) of the Act.

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