FORDYCE ROAD DEVELOPMENT LTD v KHAN [2019] NZHC 1397

FORDYCE ROAD DEVELOPMENT LTD v KHAN [2019] NZHC 1397

Given documentary evidence of concealed transfers into the director's personal account, the applicants established a good arguable case, identifiable assets, and a real risk of dissipation; on balance of justice the Court granted without-notice freezing orders with ancillary disclosure and procedural directions,...

Source-derived case information.

Citation
[2019] NZHC 1397
Parties
First Plaintiff: FORDYCE ROAD DEVELOPMENT LIMITED (IN LIQUIDATION); Second Plaintiff: BRYAN EDWARD WILLIAMS; First Defendant: FEROZ KHAN; Second Defendant: CAROL LEON KHAN
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 June 2019
Procedural Posture
Application for Freezing (restraint) Orders Under Part 32 High Court Rules 2016 in Liquidation Proceedings / Interim Without Notice Freezing Orders Granted; Timetable Directions and Listing for Further Directions
Outcome
Freezing orders granted without notice against Mr and Mrs Khan with ancillary disclosure and procedural directions; orders expire 18 July 2019 unless renewed.
Legal Topics
Freezing Order, Director's Duties, Breach of Fiduciary Duty, Knowing Receipt, Liquidation
Insolvency Company Law Equity Civil Procedure Freezing Order Director's Duties Breach of Fiduciary Duty Knowing Receipt +1 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

FORDYCE ROAD DEVELOPMENT LIMITED (IN LIQUIDATION)

First Plaintiff

BRYAN EDWARD WILLIAMS

Second Plaintiff

FEROZ KHAN

First Defendant

CAROL LEON KHAN

Second Defendant

Procedural Posture

Application for Freezing (restraint) Orders Under Part 32 High Court Rules 2016 in Liquidation Proceedings / Interim Without Notice Freezing Orders Granted; Timetable Directions and Listing for Further Directions

Legal Issues

  1. 1 Whether to grant freezing orders without notice under Part 32
  2. 2 Whether applicants have a tenable/arguable claim for breach of director's duties and for knowing receipt
  3. 3 Whether there is a real risk of dissipation of assets warranting interim restraint

Ratio Decidendi

Given documentary evidence of concealed transfers into the director's personal account, the applicants established a good arguable case, identifiable assets, and a real risk of dissipation; on balance of justice the Court granted without-notice freezing orders with ancillary disclosure and procedural directions, subject to an undertaking as to damages.

Court Disposition

Freezing orders granted without notice against Mr and Mrs Khan with ancillary disclosure and procedural directions; orders expire 18 July 2019 unless renewed.

Orders

  • Mr Khan is prohibited from disposing of, dealing with or diminishing the value of his assets, including all funds in Kiwibank accounts 38-9006-00287293-00 and 38-9006-00287293-01.
  • Mrs Khan is prohibited from disposing of, dealing with or diminishing the value of her assets.