Georgia Sherriff was responding to the council's lawyers placing a legal notice in The Border Mail yesterday outlining plans to act against her company DP Sherriff Holdings Pty Ltd.

The notice stated the shire intends to on or after January 20 "to sell or transfer to itself ALL THAT (sic) piece of land" occupied by the hotel.

It added the move was in response to DP Sherriff "having failed for a period of more than three years to have paid the rates and charges" in relation to the site.

The magistrates' court also made an order on March 1 for the outstanding amounts to be paid, the notice stated.

Mrs Sherriff said she and husband Michael agreed to buy the hotel in 2015 but settlement was not completed until May 4,2018.

She said it was bought in anticipation of its rates arrears having been wiped, but they had instead inherited it and were taking County Court legal action against those involved in the deal to resolve the matter.

Mrs Sherriff said the rates debt was about $70,000.

She said she was hopeful of the court matter being settled before the end of January.

"I'm one of those people, you can give me a pile of do do and I'll find the positive in it." Mrs Sherriff said.

Alpine Council director corporate Nathalie Cooke declined to say how much money was owed but noted it was a "significant amount".

She said the council was acting in accordance with legislation and a court order from March, although she declined to say if that specified a deadline for repayment.

Ms Cooke said the council would not wait until January 20 to see what unfolds and if the shire takes ownership of the property.

"Our intention would be to sell the land," Ms Cooke said, adding that would be at market value.

In a sales advertisement placed on the hotel's Facebook site last month, a price of $2 million is put on the freehold of the business.

The Sherriffs bought the 1986 hotel from a Melbourne barrister and split their time between Hoppers Crossing and Dinner Plain.