THE COMMISSIONER OF INLAND REVENUE V RAPTURE HOLDINGS LIMITED (STRUCK OFF) HC AK CIV 2006-404-004443
The defendant's partial payment and acceptance of a settlement constituted an implied admission of the debt, therefore the court exercised its discretion to award costs to the Commissioner on a 2B basis and ordered disbursements to be fixed by the Registrar; the proceeding was withdrawn by leave.
Source-derived case information.
- Citation
- openlaw-990e0b00_aa20_4e17_a485_b6f6a988ca13.pdf
- Parties
- Plaintiff: Commissioner of Inland Revenue; Defendant: Rapture Holdings Limited (Struck Off)
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 7 December 2006
- Procedural Posture
- Companies Act 1993 Debt Recovery / Hearing and Oral Judgment; Proceeding Withdrawn by Leave
- Outcome
- Proceeding withdrawn by leave; plaintiff awarded costs on a 2B basis and disbursements to be fixed by the Registrar.
- Legal Topics
- Debt Recovery, Struck Off Company, Costs Assessment, Settlement
Source-derived case record
Summary, issues, holding and outcome
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Parties
Commissioner of Inland Revenue
Plaintiff
Rapture Holdings Limited (Struck Off)
Defendant
Procedural Posture
Companies Act 1993 Debt Recovery / Hearing and Oral Judgment; Proceeding Withdrawn by Leave
Legal Issues
- 1 Whether the defendant's payment/settlement implied acceptance of the debt and justified an award of costs
- 2 Whether costs should be awarded against a struck off company
- 3 Appropriate basis for costs and fixing of disbursements (2B scale)
Ratio Decidendi
The defendant's partial payment and acceptance of a settlement constituted an implied admission of the debt, therefore the court exercised its discretion to award costs to the Commissioner on a 2B basis and ordered disbursements to be fixed by the Registrar; the proceeding was withdrawn by leave.
Court Disposition
Proceeding withdrawn by leave; plaintiff awarded costs on a 2B basis and disbursements to be fixed by the Registrar.
Orders
- Proceeding withdrawn by leave
- Plaintiff to have costs on a 2B basis
Full Case Text
Judgment text and source record
1 paragraphs
THE COMMISSIONER OF INLAND REVENUE V RAPTURE HOLDINGS LIMITED (STRUCK OFF) HC AK CIV 2006-404-004443 7 December 2006IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY CIV 2006-404-004443IN THE MATTER OF of the Companies Act 1993 BETWEEN THE COMMISSIONER OF INLAND REVENUE Plaintiff AND RAPTURE HOLDINGS LIMITED (STRUCK OFF) Defendant Hearing: 7 December 2006 Appearances: Ms Ryan for plaintiff Mr Massam for defendant Judgment: 7 December 2006ORAL JUDGMENT OF ASSOCIATE JUDGE J P DOOGUECounsel: Inland Revenue Department, P O Box 76-198, Auckland Mr Massam,[1] This proceeding was first called on 5 October 2006. When it was adjourned the reason why it was adjourned was that the defendant had paid part of the amount claimed by the Commissioner. The proceeding was called again 9 November 2006 and again adjourned through to today. Today Ms Ryan tells me that the company has a bank cheque for $50,000 which will be accepted in settlement of the Commissioner's claim. Mr Massam for the company tells me that he has come into the picture late and the accounts were in disarray. He says that now that returns have been done there will be a balance in favour of the company. He opposed an order for costs on that ground, and the fact that he took the view that the revenue had been "heavy handed". [2] The fact is that the Commissioner alleged a debt, the Commissioner started the proceedings to recover that debt. The company has now impliedly at least accepted that the debt was owed at the time when the proceeding was started therefore it seems to me to be appropriate to make an order for costs and I do so. The proceeding will be withdrawn by leave. The plaintiff will have costs on a 2B basis together with disbursements to be fixed by the Registrar. _____________ J.P. Doogue Associate Judge