CAPITAL HOSPITALITY HOLDINGS LTD (IN LIQUIDATION) v PANDEY & ORS [2013] NZHC 3330

CAPITAL HOSPITALITY HOLDINGS LTD (IN LIQUIDATION) v PANDEY & ORS [2013] NZHC 3330

The Court held that the application should be treated as seeking s266(1) orders to enforce interview notices for the first and tenth respondents and s266(2) orders for production of documents by respondents 2–9 and 11; the Court has jurisdiction to make orders against overseas directors where they are subject to statutory duties and a sufficient connection exists; the hearsay transcript was admissible under Evidence Act ss18 and 20; evidence established a sufficient connection between the Pandey/Rai group and CHH to justify examinations and production orders; accordingly orders for attendance and production were made.

Citation
[2013] NZHC 3330
Parties
Applicant (liquidator): Damien Grant; Applicant (liquidator): Steven Khov; First Respondent: Prakash Pandey; Second Respondent: C P Hotels Limited; Third Respondent: C P Investments Limited; Fourth Respondent: C P Carparks Limited; Fifth Respondent: C P Property Investments Limited; Sixth Respondent: C P Asset Management Limited; Seventh Respondent: J D Rai & Sons Limited; Eighth Respondent: Asia Pacific Hotel Investments; Ninth Respondent: Raisons Pacific Investments Limited; Tenth Respondent: Baboo Mahendra Pratap Rai; Eleventh Respondent: Capital Investments Corporation Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
12 December 2013
Procedural Posture
Companies Act 1993 S266 Application in Liquidation / Interlocutory Application for Production of Documents and Examinations Under Oath
Outcome
Application granted: orders made for attendance of specified persons for examination and for production of documents by specified respondents
Legal Topics
Liquidators' Investigative Powers, S261 Notices, S266 Court Powers, Examination of Directors, Production of Documents, Jurisdiction Over Overseas Persons
Company Law Insolvency Civil Procedure Evidence Liquidators' Investigative Powers S261 Notices S266 Court Powers Examination of Directors +2 more

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Parties

Damien Grant

Applicant (liquidator)

Steven Khov

Applicant (liquidator)

Prakash Pandey

First Respondent

C P Hotels Limited

Second Respondent

C P Investments Limited

Third Respondent

C P Carparks Limited

Fourth Respondent

C P Property Investments Limited

Fifth Respondent

C P Asset Management Limited

Sixth Respondent

J D Rai & Sons Limited

Seventh Respondent

Asia Pacific Hotel Investments

Eighth Respondent

Raisons Pacific Investments Limited

Ninth Respondent

Baboo Mahendra Pratap Rai

Tenth Respondent

Capital Investments Corporation Limited

Eleventh Respondent

Procedural Posture

Companies Act 1993 S266 Application in Liquidation / Interlocutory Application for Production of Documents and Examinations Under Oath

Legal Issues

  1. 1 Whether orders should be made under s266(1) to enforce s261 interview notices
  2. 2 Whether orders should be made under s266(2) for production of documents
  3. 3 Jurisdiction to make orders against persons resident overseas

Ratio Decidendi

The Court held that the application should be treated as seeking s266(1) orders to enforce interview notices for the first and tenth respondents and s266(2) orders for production of documents by respondents 2–9 and 11; the Court has jurisdiction to make orders against overseas directors where they are subject to statutory duties and a sufficient connection exists; the hearsay transcript was admissible under Evidence Act ss18 and 20; evidence established a sufficient connection between the Pandey/Rai group and CHH to justify examinations and production orders; accordingly orders for attendance and production were made.

Court Disposition

Application granted: orders made for attendance of specified persons for examination and for production of documents by specified respondents

Orders

  • Prakash Pandey to attend at the offices of the liquidators on a date to be advised for an interview to be conducted under oath (order under s266(1))
  • Baboo Mahendra Pratap Rai to attend at the offices of the liquidators on a date to be advised for an interview to be conducted under oath (order under s266(1))