The High Court has confirmed that a company seeking to set aside a statutory demand must act within the strict 10 working day deadline. In Future Sustainable Construction Ltd v 1st Piler Ltd [2026] NZHC 2871, the Court dismissed an application filed after that period and declined interim relief sought while judicial review of an adjudication determination continues.

The decision, delivered by Jagose J in the High Court at Auckland on 21 September 2026, offers practical reminders for trade creditors and debt-recovery teams using the Construction Contracts Act 2002 and Companies Act 1993.

What happened

1st Piler Ltd, an earthworks subcontractor, issued a payment claim to the head contractor, Future Sustainable Construction Ltd (FSC), for $543,608.76. The Court’s decision records that FSC did not provide a valid payment schedule. An adjudicator determined on 9 December 2025 that FSC was liable for the full amount.

On 19 December 2025, 1st Piler served a statutory demand by leaving it at FSC’s registered office. FSC applied to set it aside on 14 January 2026 and also sought judicial review of the adjudicator’s determination, alongside interim orders to pause enforcement.

What the High Court decided

• Service was valid. Leaving the demand at FSC’s registered office was effective service under the Companies Act 1993. It did not need to reach a particular person within the company.
• A later address change did not alter the position. FSC’s change of address for service took effect after the demand had been validly served.
• The set-aside application was too late. The Court held that an application made outside the 10 working day period in s 290(2) was a nullity, and the Court had no power to extend the deadline.
• The payment claim remained enforceable. An unanswered payment claim is treated as a payable debt under s 23(2)(a) of the Construction Contracts Act 2002. FSC could not treat its earlier response as a valid payment schedule.
• Judicial review did not stop enforcement. The Court declined interim relief. Section 60 of the Construction Contracts Act keeps an adjudicator’s determination enforceable while review proceedings remain on foot. The substantive judicial review has yet to be determined.

Key takeaways for trade creditors

• Serve statutory demands at the registered office or address for service, and keep clear evidence of service.
• Monitor the 10 working day deadline closely. A late set-aside application may be ineffective.
• Check whether a construction payment claim received a valid payment schedule within the required timeframe.
• Remember that judicial review of an adjudication determination does not itself suspend enforcement.

Case reference

Future Sustainable Construction Ltd v 1st Piler Ltd [2026] NZHC 2871 (High Court, Auckland Registry, Jagose J, 21 September 2026).

This article is general commentary only and does not constitute legal advice. Seek specific professional advice before relying on a statutory demand or adjudication determination in a particular recovery matter.