YINJI ZHENG v JUN YUE INVESTMENT LTD [2023] NZHC 2169

YINJI ZHENG v JUN YUE INVESTMENT LTD [2023] NZHC 2169

The Court granted the interim receiver the requested powers because the sales were necessary and urgent to generate cashflow to avoid forfeiture of $600,000 in deposits, to enable repayment of mortgage advances due 15 December 2023 and to address increased default interest and IRD obligations; accordingly the...

Source-derived case information.

Citation
[2023] NZHC 2169
Parties
First Plaintiff: Yinji Zheng; Second Plaintiff: Funjun Liu; First Defendant: Jun Yue Investment Limited; Second Defendant: Ping Fan; Third Defendant: Yue Yang; Fourth Defendant: Hongtao Zhang
Court
High Court
Jurisdiction
New Zealand
Judgment Date
14 August 2023
Procedural Posture
Application for Directions by Interim Receiver (civil) / Interlocutory — Directions on Papers
Outcome
Application granted; directions issued to the interim receiver to market and sell specified assets to generate cashflow.
Legal Topics
Appointment of Interim Receiver, Power to Sell Company Assets, On‑sale Agreements, Urgent Interlocutory Relief, Mortgage Repayment, Default Interest, Instalment Arrangement With Tax Authority
Company Law Receivership Property Law Contract Law Civil Procedure Banking and Finance Tax Law Appointment of Interim Receiver +6 more

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Parties

Yinji Zheng

First Plaintiff

Funjun Liu

Second Plaintiff

Jun Yue Investment Limited

First Defendant

Ping Fan

Second Defendant

Yue Yang

Third Defendant

Hongtao Zhang

Fourth Defendant

Procedural Posture

Application for Directions by Interim Receiver (civil) / Interlocutory — Directions on Papers

Legal Issues

  1. 1 Whether the interim receiver should be authorised to market and on‑sell three sections the company has contracted to buy in Pokeno to avoid forfeiture of deposits
  2. 2 Whether the interim receiver should be authorised to sell three unsold Flat Bush sections to repay a mortgage maturing 15 December 2023
  3. 3 Whether the interim receiver should be authorised to sell surplus motor vehicles to generate cashflow

Ratio Decidendi

The Court granted the interim receiver the requested powers because the sales were necessary and urgent to generate cashflow to avoid forfeiture of $600,000 in deposits, to enable repayment of mortgage advances due 15 December 2023 and to address increased default interest and IRD obligations; accordingly the directions sought were appropriate and ordered.

Court Disposition

Application granted; directions issued to the interim receiver to market and sell specified assets to generate cashflow.

Orders

  • Interim receiver is authorised to market and on‑sell the three sections at 106 Great South Road, Pokeno that the company has contracted to purchase.
  • Interim receiver is authorised to market and sell the three unsold residential sections at 1 Uki Way, Flat Bush; 3 Uki Way, Flat Bush; and 39 Te Kura Road, Flat Bush, Auckland.