R v PAREKH [2018] NZHC 2407

R v PAREKH [2018] NZHC 2407

The Court held the matter was properly commenced by originating application and, exercising its power under s 280, granted Messrs Jackson and Graham leave to act as liquidators of Forestlands N.Z. Limited, subject to service on known creditors and a 10 working day period in which creditors (including Leaders) may apply to set aside the appointment; the applicants' solicitor/client costs of the application are to be an expense of the liquidation limited to those which are actual and reasonable.

Citation
[2018] NZHC 2407
Parties
Applicant (proposed Liquidator): Neale Jackson; Applicant (proposed Liquidator): Grant Robert Graham; Company (subject): Forestlands N.Z. Limited; Creditor: Leaders Real Estate (1987) Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
12 September 2018
Procedural Posture
Application Under Part 19 High Court Rules and Ss 280 and 286 Companies Act 1993 / Originating Application (without Notice) Determination
Outcome
Application granted; applicants permitted to act as liquidators subject to conditions
Legal Topics
Appointment of Liquidator, Leave to Commence Proceedings, Service on Creditors and Setting Aside Appointment, Costs as Liquidation Expense
Company Law Insolvency Civil Procedure Appointment of Liquidator Leave to Commence Proceedings Service on Creditors and Setting Aside Appointment Costs as Liquidation Expense

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Parties

Neale Jackson

Applicant (proposed Liquidator)

Grant Robert Graham

Applicant (proposed Liquidator)

Forestlands N.Z. Limited

Company (subject)

Leaders Real Estate (1987) Limited

Creditor

Procedural Posture

Application Under Part 19 High Court Rules and Ss 280 and 286 Companies Act 1993 / Originating Application (without Notice) Determination

Legal Issues

  1. 1 Whether the originating application was a proper procedure for seeking leave under s 280
  2. 2 Whether Messrs Jackson and Graham should be permitted to act as liquidators of Forestlands N.Z. Limited
  3. 3 What procedural protections and timeframes should be afforded to creditors to challenge the appointment

Ratio Decidendi

The Court held the matter was properly commenced by originating application and, exercising its power under s 280, granted Messrs Jackson and Graham leave to act as liquidators of Forestlands N.Z. Limited, subject to service on known creditors and a 10 working day period in which creditors (including Leaders) may apply to set aside the appointment; the applicants' solicitor/client costs of the application are to be an expense of the liquidation limited to those which are actual and reasonable.

Court Disposition

Application granted; applicants permitted to act as liquidators subject to conditions

Orders

  • Applicants Neale Jackson and Grant Robert Graham are granted leave to act as liquidators of Forestlands N.Z. Limited pursuant to s 280 of the Companies Act 1993.
  • Copies of the originating application and the sealed orders are to be served on all known creditors of FNZ at the same time and in the same manner as notice of a first creditors' meeting would be served.