THE COMMISSIONER OF INLAND REVENUE V FOR FINANCE LIMITED HC CHCH CIV-2006-470-000702

THE COMMISSIONER OF INLAND REVENUE V FOR FINANCE LIMITED HC CHCH CIV-2006-470- 000702 12 February 2007IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY CIV-2006-470-000702IN THE MATTER OF The Companies Act 1993 BETWEEN THE COMMISSIONER OF INLAND REVENUE Plaintiff AND FOR FINANCE LIMITED Defendant Hearing: 12 February 2007 Appearances: H R Sumner for Plaintiff Judgment: 12 February 2007REASONS FOR JUDGMENT OF ASSOCIATE JUDGE CHRISTIANSEN Upon Interlocutory Application to Place Defendant into Liquidation[1] On 30 January 2007 I delivered a brief judgment upon my dismissal of the defendant's application to set aside the plaintiff's statutory demand. At that time I extended until 4 p.m. 9 February 2007 the time for compliance with the plaintiff's statutory demand. Also I adjourned the proceeding until today to enable the plaintiff to consider the options available to him. [2] When this matter was called before me this morning the plaintiff applied for the defendant's liquidation for the appointment of Messrs Deuchrass and Nellies as liquidators. In advance of today's hearing the Court received by facsimile a memorandum from a Hamilton solicitor advising the defendant was instructing new counsel and stating that a Mr G Fisher would be appearing as agent for the defendant when the matter was called. This solicitor mentioned Mr Fisher would be applying to have the proceedings transferred to Hamilton.[3] This morning when the matter was called no counsel appeared on instructions from the solicitor. Instead Mr Fisher appeared. He confirmed he wished the proceedings adjourned and to be transferred to Hamilton. I informed Mr Fisher that his applications were refused. Shortly afterwards I made an order for the defendant's liquidation. My reasons: i) Following the hearing before me on 30 January 2007 the defendant was advised to pay the amount in the statutory demand to the Commissioner's Christchurch office. ii) The defendant did not make payment in time or at all. iii) It was apparent to me when I dismissed the defendant's setting aside application that there was not a substantial dispute regarding its liability to meet the statutory demand. iv) Since 30 January 2007 the defendant has taken no step to challenge my decision of that date, nor has it paid the debt due. v) The company is presumed to be unable to pay its debts. The Court has received the consent of two persons prepared to be appointed as liquidators. [4] In the circumstances I made an order for the defendant's liquidation, and appointed Mr W J Deuchrass and Mr I A Nellies as liquidators. Also I fixed costs on a category 2B basis and ordered disbursements to be paid as fixed by the Registrar. [5] The time of the order for liquidation I noted at 11.07 a.m.Solicitors: Inland Revenue Department, Christchurch, Plaintiff