WALLER & ANOR AS LIQUIDATORS OF KIWI INTERNATIONAL AIRLINES LTD (IN LIQUIDATION) HC AK CIV 2005-404-7051

WALLER & ANOR AS LIQUIDATORS OF KIWI INTERNATIONAL AIRLINES LTD (IN LIQUIDATION) HC AK CIV 2005-404-7051

Where the cost, practical difficulty and likely outcome of undertaking the full proof of debt and distribution process would be unreasonable and inefficient and would defeat the purpose of distribution (by exhausting or substantially reducing the fund), the Court may, under its s 284 powers, direct that the net...

Source-derived case information.

Citation
openlaw-f20acf74_c7cd_42e1_a8c6_664f01aa8821.pdf
Parties
Applicant (liquidator): John Anthony Waller; Applicant (liquidator): Colin Thomas McCloy; Company (in Liquidation): Kiwi International Airlines Limited (in liquidation)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
26 July 2006
Procedural Posture
Liquidation Directions Under Companies Act 1993 S 284 / Ex Parte Originating Application for Directions; Judgment Delivered 26 July 2006
Outcome
Application granted; orders as sought in paragraphs 1 to 5 and 7 of the liquidators' application of 6 December 2005 made
Legal Topics
Liquidation, Distribution of Surplus, Proof of Debt Process, Court Directions Under S 284
Company Law Insolvency Civil Procedure Liquidation Distribution of Surplus Proof of Debt Process Court Directions Under S 284

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 11 Party arguments 1 Amounts and remedies 7
Sign in to unlock

Parties

John Anthony Waller

Applicant (liquidator)

Colin Thomas McCloy

Applicant (liquidator)

Kiwi International Airlines Limited (in liquidation)

Company (in Liquidation)

Procedural Posture

Liquidation Directions Under Companies Act 1993 S 284 / Ex Parte Originating Application for Directions; Judgment Delivered 26 July 2006

Legal Issues

  1. 1 Whether the ex parte procedure was appropriate for the liquidators' application
  2. 2 Whether the Court can dispense with the ordinary distribution process and relieve liquidators from accounting to unsecured creditors where distribution is impractical or uneconomic
  3. 3 What orders are appropriate to complete or terminate the liquidation and protect the liquidators

Ratio Decidendi

Where the cost, practical difficulty and likely outcome of undertaking the full proof of debt and distribution process would be unreasonable and inefficient and would defeat the purpose of distribution (by exhausting or substantially reducing the fund), the Court may, under its s 284 powers, direct that the net surplus (after liquidators' costs) be paid into the Crown Liquidation Surplus Account and dispense with statutory procedural requirements, thereby completing or terminating the liquidation and releasing the liquidators from further administration.

Court Disposition

Application granted; orders as sought in paragraphs 1 to 5 and 7 of the liquidators' application of 6 December 2005 made

Orders

  • Leave granted to commence the proceeding by way of ex parte originating application
  • After payment of the applicants' costs of and in the liquidation, all remaining funds are to be paid to the Crown Liquidation Surplus Account