JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION) v COMMISSIONER OF INLAND REVENUE [2014] NZSC 2
The Supreme Court granted leave to appeal to resolve the substantive legal question whether the s 167(1) statutory trust survives the liquidation of a company or is extinguished so that the funds are governed by Schedule 7 of the Companies Act 1993.
Source-derived case information.
- Citation
- [2014] NZSC 2
- Parties
- First Applicant: Jennings Roadfreight Limited (in liquidation); Second Applicant: Boris van Delden and Roy Horrocks as liquidators of Jennings Roadfreight Limited (in liquidation); Respondent: Commissioner of Inland Revenue
- Court
- Supreme Court
- Jurisdiction
- New Zealand
- Judgment Date
- 14 February 2014
- Procedural Posture
- Supreme Court Appeal / Leave to Appeal Granted
- Outcome
- Leave to appeal granted
- Legal Topics
- Statutory Trust Under S 167(1) Tax Administration Act 1994, Liquidation, Schedule 7 Companies Act 1993, Priority of Creditors, Continuance or Extinguishment of Statutory Trusts, Leave to Appeal
Source-derived case record
Summary, issues, holding and outcome
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Parties
Jennings Roadfreight Limited (in liquidation)
First Applicant
Boris van Delden and Roy Horrocks as liquidators of Jennings Roadfreight Limited (in liquidation)
Second Applicant
Commissioner of Inland Revenue
Respondent
Procedural Posture
Supreme Court Appeal / Leave to Appeal Granted
Legal Issues
- 1 Whether the trust arising under s 167(1) of the Tax Administration Act 1994 continues in existence upon the liquidation of a company in respect of funds held in the company's account
- 2 Whether the trust is extinguished upon liquidation so that the funds are dealt with in accordance with Schedule 7 of the Companies Act 1993
Ratio Decidendi
The Supreme Court granted leave to appeal to resolve the substantive legal question whether the s 167(1) statutory trust survives the liquidation of a company or is extinguished so that the funds are governed by Schedule 7 of the Companies Act 1993.
Court Disposition
Leave to appeal granted
Orders
- Leave to appeal is granted.
- Approved ground for appeal: whether the trust arising under s 167(1) of the Tax Administration Act 1994 continues in existence upon the liquidation of a company, in respect of funds held in the company's account, or is extinguished upon the liquidation so that the funds held are dealt with in accordance with...
Full Case Text
Judgment text and source record
1 paragraphs
JENNINGS ROADFREIGHT LIMITED (IN LIQUIDATION) v COMMISSIONER OF INLAND REVENUE [2014] NZSC 2 [14 February 2014]IN THE SUPREME COURT OF NEW ZEALANDSC 118/2013[2014] NZSC 2BETWEEN JENNINGS ROADFREIGHT LIMITED(IN LIQUIDATION)First ApplicantBORIS VAN DELDEN AND ROYHORROCKS AS LIQUIDATORS OFJENNINGS ROADFREIGHT LIMITED(IN LIQUIDATION)Second ApplicantAND COMMISSIONER OF INLANDREVENUERespondentCourt: McGrath, William Young and Arnold JJCounsel: A W Johnson and C C Mansell for ApplicantsP H Courtney and C I J Fleming for RespondentJudgment: 14 February 2014JUDGMENT OF THE COURTA. Leave to appeal is granted.B. The approved ground for appeal is whether:(a) the trust arising under s 167(1) of the Tax Administration Act 1994 continues in existence upon the liquidation of a company, in respect of fundsheld in the company's account; or(b) the trust is extinguished upon the liquidation, so that the funds held are dealt with in accordance with Schedule 7 of the Companies Act 1993.____________________________________________________________________Solicitors:Martelli McKegg, Auckland for First and Second ApplicantsCrown Law Office, Wellington for Respondent