GS REA AND ANOR V LINING SERVICES LIMITED (FORMERLY KNOWN AS AUCKLAND LINING SERVICES (2007) LIMITED AND AUCKLAND SERVICES LIMITED) HC AK CIV 2008-404-2842

GS REA AND ANOR V LINING SERVICES LIMITED (FORMERLY KNOWN AS AUCKLAND LINING SERVICES (2007) LIMITED AND AUCKLAND SERVICES LIMITED) HC AK CIV 2008-404-2842

The liquidators proved that the specified payments were voidable under the Companies Act 1993 and the Court ordered those payments set aside and judgment entered for repayment of $45,000 with interest and costs.

Citation
openlaw-d20ba9ba_8b04_4fff_a1a5_15a2648042b5.pdf
Parties
Liquidators (applicants): Gerald Stanley Rea and Paul Graham Sargison; Other Party (respondent): Lining Services Limited (formerly known as Auckland Lining Services (2007) Limited and Auckland Services Limited)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 June 2008
Procedural Posture
Application Under Companies Act 1993 Ss 292 296 / Judgment at First Mention (unopposed)
Outcome
Orders granted to set aside specified payments and to enter judgment for repayment of $45,000 with interest and costs.
Legal Topics
Voidable Transactions, Preferences, Set Aside Transactions, Recovery of Value Under Liquidation, Interest and Costs
Company Law Insolvency Liquidation Voidable Transactions Preferences Set Aside Transactions Recovery of Value Under Liquidation Interest and Costs

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Parties

Gerald Stanley Rea and Paul Graham Sargison

Liquidators (applicants)

Lining Services Limited (formerly known as Auckland Lining Services (2007) Limited and Auckland Services Limited)

Other Party (respondent)

Procedural Posture

Application Under Companies Act 1993 Ss 292 296 / Judgment at First Mention (unopposed)

Legal Issues

  1. 1 Whether payments made by Asten Building Ltd to the Other Party were voidable under the Companies Act 1993
  2. 2 Whether the liquidators were entitled to have those payments set aside and to recover their value pursuant to s 295
  3. 3 Appropriate interest and costs orders where judgment is entered for recovered sums

Ratio Decidendi

The liquidators proved that the specified payments were voidable under the Companies Act 1993 and the Court ordered those payments set aside and judgment entered for repayment of $45,000 with interest and costs.

Court Disposition

Orders granted to set aside specified payments and to enter judgment for repayment of $45,000 with interest and costs.

Orders

  • Order setting aside, pursuant to s 294 of the Companies Act 1993, payments of $5,000 each made on 12 July 2006, 19 July 2006, 26 July 2006, 2 August 2006, 9 August 2006, 16 August 2006, 23 August 2006, 20 September 2006 and 4 October 2006 (total $45,000).
  • The Other Party is directed to repay to the liquidators the sum of $45,000, being the value calculated pursuant to s 295 of the Companies Act, and judgment is entered for that sum together with interest and costs to be fixed by the Registrar.