QUESTION 3

Biz Coffee Pty Ltd owes Restritto Coffee Pty Ltd $30,000 being the cost of coffee for the last 6 months. The reason Biz Coffee Pty Ltd has not paid the $30,000 to Restritto Coffee Pty Ltd is because of escalating rental prices and a decline in coffee sales. Restritto Coffee Pty Ltd has repeatedly sent invoices but there has been no response from Biz Coffee Pty Ltd.

Required:

Restritto Coffee Pty ltd would like your advice on whether the court would order compulsory winding up of Biz Coffee Pty Ltd.

NOTE: You are required to use the 4-step process in answering this question. The marks allocated for the steps are as follows: