FM CUSTODIANS LIMITED v HANNAN [2017] NZHC 2578

FM CUSTODIANS LIMITED v HANNAN [2017] NZHC 2578

There was no serious question to be tried that would justify an interim injunction because the remedy sought against the receiver and creditor is one in damages, the companies (not the bankrupt) own the property and the receiver is entitled and obliged to realise those assets to reduce debt; the balance of convenience favoured completing the sale of 7A Waiu Street and overall justice did not require granting injunctive relief.

Citation
[2017] NZHC 2578
Parties
Judgment Creditor: FM Custodians Limited; Judgment Debtor: Patrick Bernard Christopher Hannan
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 October 2017
Procedural Posture
Bankruptcy / Insolvency / Application for Interim (interlocutory) Injunction to Restrain Sale; Bankruptcy Proceedings Defended and Reserved
Outcome
Application for interim injunction dismissed.
Legal Topics
Interim Injunction, Receivership, Sale of Assets, Balance of Convenience, Damages as Alternative Remedy, Contaminated Land
Insolvency Bankruptcy Civil Procedure Property Law Equity Interim Injunction Receivership Sale of Assets +3 more

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Parties

FM Custodians Limited

Judgment Creditor

Patrick Bernard Christopher Hannan

Judgment Debtor

Procedural Posture

Bankruptcy / Insolvency / Application for Interim (interlocutory) Injunction to Restrain Sale; Bankruptcy Proceedings Defended and Reserved

Legal Issues

  1. 1 Whether an interim injunction should restrain sale of company-owned property pending outcome of debtor's defended bankruptcy proceedings
  2. 2 Whether there is a serious question to be tried
  3. 3 Whether damages are an adequate remedy such that injunction should be refused

Ratio Decidendi

There was no serious question to be tried that would justify an interim injunction because the remedy sought against the receiver and creditor is one in damages, the companies (not the bankrupt) own the property and the receiver is entitled and obliged to realise those assets to reduce debt; the balance of convenience favoured completing the sale of 7A Waiu Street and overall justice did not require granting injunctive relief.

Court Disposition

Application for interim injunction dismissed.

Orders

  • Interim injunction application dismissed.