CASTLEREAGH PROPERTIES LIMITED V ROBERT WALKER AS LIQUIDATOR OF GIBBSTON WATER HOLDINGS LIMITED (IN LIQUIDATION) CA440/2014 [2015] NZCA 368

DRAFTCASTLEREAGH PROPERTIES LIMITED V ROBERT WALKER AS LIQUIDATOR OF GIBBSTON WATER HOLDINGS LIMITED (IN LIQUIDATION) CA440/2014 [2015] NZCA 368 [12 August 2015]IN THE COURT OF APPEAL OF NEW ZEALANDCA440/2014[2015] NZCA 368BETWEEN CASTLEREAGH PROPERTIESLIMITEDAppellantAND ROBERT WALKER AS LIQUIDATOROF GIBBSTON WATER HOLDINGSLIMITED (IN LIQUIDATION)RespondentCourt: Harrison, Wild and Winkelmann JJCounsel: J Moss for AppellantK P Sullivan for RespondentJudgment:(On the papers)12 August 2015 at 2.15 pmJUDGMENT OF THE COURTA The application for leave to adduce new evidence is dismissed.B The appellant must pay the respondent's costs on a standard application for leave on a band B basis and usual disbursements.____________________________________________________________________REASONS OF THE COURT(Given by Harrison J)[1] This appeal is set down for hearing on 20 August 2015.[2] Castlereagh Properties Ltd appeals against a judgment delivered in the High Court at Christchurch.1 Mander J made orders on an application by the respondent, Robert Walker, under s 284 of the Companies Act 1993 confirming these decisions which Mr Walker had made as liquidator of Gibbston Holdings Ltd:[138] (a) The decision of the liquidator to void the sale and purchase agreement between Gibbston Water Holdings Ltd (in liquidation) and Castlereagh Properties Ltd dated 24 August 2011 is confirmed.(b) That Gibbston Water Holdings Ltd is the 100% shareholder of Gibbston Water Services Ltd, and the share register of Gibbston Water Services Ltd is to be updated to record this.(c) The appointment of Denis William Anson Marshall as sole director of Gibbston Water Services Ltd by the liquidator on 23 December 2011 is confirmed.Costs[139] The applicant is entitled to costs on a 2B basis. If the parties cannot agree on the incidence and amount of costs, they are to file memorandum (no more than 5 pages each) which have been previously exchanged in draft.[3] The principal issue for determination in the High Court was whether Castlereagh was able to establish that a transfer of shares between related companies for $60,000, which the liquidator had voided, was at a fair value. Castlereagh asserts that the Judge erred in:[89] conclud[ing] that notwithstanding liabilities that the company may have been carrying, it was not apparent at the time of the transfer from Holdings to Castlereagh that the shares were worthless. On the evidence adduced, the respondents who seek to uphold the transaction have not discharged the onus of establishing fair value. I therefore find that theliquidator's decision to avoid the sale and purchase agreement of Services'shares between Holdings and Castlereagh pursuant to s 141 of the Act was valid.[4] On 3 August 2015 Castlereagh filed an application to adduce new evidence in this Court on the grounds that the evidence is documentary, relatively brief, cogent and reliable; is fresh and updates the Court on events occurring since the High Court hearing; and goes to the heart of the appeal on the issue of the value of the assets of Gibbston Water Services Limited. Mr Walker opposes the application.1 Walker v Gibbston Water Services Ltd [2014] NZHC 1638.[5] The evidence which Castlereagh seeks to adduce on appeal – set out in an affidavit by Kristina Buxton, now a Gibbston director – refers to a number of steps taken by various parties since the judgment was delivered. Its apparent purpose is tosupport Castlereagh's case that the shares were transferred in 2011 at a true or fairvalue.[6] However, events occurring since July 2014, some three years after the transaction, are irrelevant to the issue of whether at trial Castlereagh had discharged its evidential onus of establishing that the transaction was at true value. On this ground alone, the application must fail.[7] The application for leave to adduce new evidence on appeal is dismissed. Mr Walker is entitled to costs on a standard application for leave on a band B basis together with usual disbursements.Solicitors:Ngaire Smith, Christchurch for AppellantLuke Cunningham Clere, Wellington for Respondent