The move follows a dispute over payment of what is now a $9860 bill for court costs, incurred after court hearings last year.
Mr Harland said yesterday the group, now known as Sort the System, had paid only $1200, and that was after the council initiated legal proceedings in May.
"We have this debt; it hasn't been paid," Mr Harland said.
As in any situation when it was owed money, the council applied to have the assets of the party liquidated, with any money left over going to repay the debt.
STS president Dave Witherow's statement of defence said the organisation's principle defence was that "the society is quite able to pay the balance of its debt to the DCC, and that to close the society down while it is actively paying the money owed is a perversion of natural justice".
The statement said STS originally owed $15,820, but had paid $5960, $4740 by way of security, and $1200 this year.
The hearing will be held on August 30.
