ARRANMORE DEVELOPMENTS LTD V ZEELAND DEVELOPMENTS LTD HC AK CIV-2009-404-004342

ARRANMORE DEVELOPMENTS LTD V ZEELAND DEVELOPMENTS LTD HC AK CIV-2009-404-004342

The Court ordered specific performance against Zeeland, Chaudhary and Narayan (Avirappattu struck out on settlement), set settlement for 2 July 2010, required security of $26,500 plus interest at 15% per annum from 22 May 2009 to 2 July 2010 to be secured by acceptable asset/mortgage for Chaudhary and Narayan pending resolution of equitable set-off, and established a practical cancellation mechanism allowing the vendor to cancel after giving a written 12 working day notice unless the purchaser files an application in that period to resist cancellation; costs were fixed and allocated as set out.

Citation
openlaw-3c209d06_2b49_436f_9182_f62774e6e9e6.pdf
Parties
Plaintiff: Arranmore Developments Ltd; Defendant: Zeeland Developments Ltd; Defendant: Jaison Paul Avirappattu; Defendant: Akhil Chaudhary; Defendant: Shane Anjay Narayan
Court
High Court
Jurisdiction
New Zealand
Judgment Date
15 June 2010
Procedural Posture
Summary Judgment Application and Application for Specific Performance / Judgment and Final Orders (directions on Settlement, Security and Costs)
Outcome
Proceeding against Avirappattu struck out; orders for specific performance made against Zeeland Developments Ltd, Akhil Chaudhary and Shane Anjay Narayan with settlement fixed, security reserved for set-off claims, and costs fixed and apportioned.
Legal Topics
Specific Performance, Cancellation of Contract, Equitable Set Off, Security Pending Determination, Costs Allocation
Contract Property Equity Civil Procedure Specific Performance Cancellation of Contract Equitable Set Off Security Pending Determination +1 more

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Parties

Arranmore Developments Ltd

Plaintiff

Zeeland Developments Ltd

Defendant

Jaison Paul Avirappattu

Defendant

Akhil Chaudhary

Defendant

Shane Anjay Narayan

Defendant

Procedural Posture

Summary Judgment Application and Application for Specific Performance / Judgment and Final Orders (directions on Settlement, Security and Costs)

Legal Issues

  1. 1 Whether orders for specific performance should be made against the purchasers
  2. 2 Whether a vendor must return to Court to obtain permission to cancel after an order for specific performance
  3. 3 Whether equitable set-off for alleged misrepresentation reduces the amounts due and interest at settlement and how security should be provided pending resolution

Ratio Decidendi

The Court ordered specific performance against Zeeland, Chaudhary and Narayan (Avirappattu struck out on settlement), set settlement for 2 July 2010, required security of $26,500 plus interest at 15% per annum from 22 May 2009 to 2 July 2010 to be secured by acceptable asset/mortgage for Chaudhary and Narayan pending resolution of equitable set-off, and established a practical cancellation mechanism allowing the vendor to cancel after giving a written 12 working day notice unless the purchaser files an application in that period to resist cancellation; costs were fixed and allocated as set out.

Court Disposition

Proceeding against Avirappattu struck out; orders for specific performance made against Zeeland Developments Ltd, Akhil Chaudhary and Shane Anjay Narayan with settlement fixed, security reserved for set-off claims, and costs fixed and apportioned.

Orders

  • Proceeding against Jaison Paul Avirappattu struck out without costs.
  • Order for specific performance against Zeeland Developments Ltd; settlement to occur on 2 July 2010; interest on unpaid purchase price to be calculated to 2 July 2010 and outgoings apportioned as at that date; insertion of 12 working day cancellation clause; Zeeland to pay plaintiff costs of $21,651.49 (Zeeland...