A man accused of setting his neighbour on fire at a NSW housing commission complex in Wollongong on Tuesday night has been refused bail.
Police allege that Timothy Illingworth, 41, and Joseph Frank Baldacchino, 45, were arguing over a dog immediately before Mr Illingworth doused the victim with accelerant and set him alight.
Laura Kirby, 44, who tried to extinguish the flames was also burnt.
Mr Baldacchino was treated at the scene by paramedics before being taken to Wollongong Hospital with severe burns to his entire face, chest and both arms, as well as burns and swelling to his airways.
He was then flown to Concord Hospital where he remains in a critical condition.
Ms Kirby is in a stable condition in Wollongong Hospital with burns to both arms.
Police arrested Mr Illingworth at his unit about 10.30pm.
He was taken to Wollongong police station where he was charged with throwing or laying down an explosive with intent to maim or do grievous bodily harm.
In court on Wednesday, his lawyer Matt Russoniello said Mr Illingworth would fight the allegations against him.
"He denies knowing or having any interaction with the victim," Mr Russoniello said.
"He says he hadn't left his unit that evening and was largely unaware of the incident."
Mr Russoniello argued there was no evidence before the court that placed Mr Illingworth at the scene and that the street was known for being a problem area.
"Mr Illingworth instructs me serious incidents happen at this place on a daily basis. To that point, he doesn't look out the window any more to see what's going on," Mr Russoniello said.
Police claim the victims were visiting friends inside the unit block when they were set upon by Mr Illingworth's dog, which chased them up the stairs of the building.
This prompted a heated argument between Mr Illingworth and the victims.
Police allege Mr Illingworth confronted the pair as they tried to leave the building, spraying a liquid accelerant on Mr Baldacchino's face and torso while using a lighter to ignite the fluid.
The victim "erupted in flame", police said, prompting Ms Kirby to grab him, drag him to the ground and lie on top of him in an attempt to extinguish the fire.
Neighbours soon came to the pair's aid.
In court on Wednesday, magistrate Mark Douglass refused to release Mr Illingworth on bail, noting he was already wanted in South Australia for skipping bail on a serious assault charge.
He rejected Mr Russoniello's suggestion the evidence against Mr Illingworth was weak, saying it appeared there was an established relationship between him and the victim that would strengthen the prosecution's case.
"It was serious, premeditated and, of course, unlawful," he said.
The matter will return to court on March 8.