CHILCOTT AND CHATFIELD, LIQUIDATORS V PIN HC PMN CIV-2004-454-894

CHILCOTT AND CHATFIELD, LIQUIDATORS V PIN HC PMN CIV-2004-454-894

The payments, although paid into a bank account controlled by Pin, were payments due to Nakita and made within the six‑month restricted period; under s292(3) they were presumed made when Nakita was unable to pay its debts and not in the ordinary course of business; the presumption was not rebutted, the payments...

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Citation
openlaw-d341fb25_5a86_4088_96c5_da543e17cece.pdf
Parties
Creditor: Laurence George Chilcott and Peter Charles Chatfield (Liquidators); Debtor: John Pin
Court
High Court
Jurisdiction
New Zealand
Judgment Date
14 March 2006
Procedural Posture
Application Under the Companies Act 1993 (s292) / Hearing and Judgment on Application
Outcome
Application dismissed; transactions held voidable under s292 and repayment ordered under s295
Legal Topics
Voidable Transactions, Preferential Payments, Ordinary Course of Business, Liquidator Remedies
Insolvency Company Law Civil Procedure Voidable Transactions Preferential Payments Ordinary Course of Business Liquidator Remedies

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Parties

Laurence George Chilcott and Peter Charles Chatfield (Liquidators)

Creditor

John Pin

Debtor

Procedural Posture

Application Under the Companies Act 1993 (s292) / Hearing and Judgment on Application

Legal Issues

  1. 1 Whether the three payments constituted transactions of Nakita Trading Limited for s292 purposes
  2. 2 Whether Nakita was unable to pay its due debts at the time of the payments
  3. 3 Whether the payments enabled the recipient to receive more than in liquidation (preference)

Ratio Decidendi

The payments, although paid into a bank account controlled by Pin, were payments due to Nakita and made within the six‑month restricted period; under s292(3) they were presumed made when Nakita was unable to pay its debts and not in the ordinary course of business; the presumption was not rebutted, the payments conferred a preference and were therefore voidable under s292, entitling liquidators to repayment under s295.

Court Disposition

Application dismissed; transactions held voidable under s292 and repayment ordered under s295

Orders

  • Order for payment by John Pin to the liquidators of $13,959.06 for distribution among Nakita's creditors (s295 Companies Act 1993)
  • Costs awarded to the liquidators against John Pin on a category 2B basis plus disbursements as fixed by the Registrar