COMMISSIONER OF INLAND REVENUE v NEW ORLEANS HOTEL (2011) LIMITED [2017] NZHC 2500

COMMISSIONER OF INLAND REVENUE v NEW ORLEANS HOTEL (2011) LIMITED [2017] NZHC 2500

New Orleans was and remains insolvent with an undisputed and increasing tax debt; the security proffered was inadequate or unsupported by admissible valuation and guarantees; there was no arguable defence to the debt and the Fresh Cut Flower threshold for leave to defend was not met; accordingly the Court refused to stay the liquidation proceeding or restrain advertising and refused leave to file a defence out of time.

Citation
[2017] NZHC 2500
Parties
Judgment Creditor: Commissioner of Inland Revenue; Judgment Debtor: New Orleans Hotel (2011) Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
12 October 2017
Procedural Posture
Liquidation (creditor's Application) / Interlocutory Applications Dismissed; Hearing Adjourned to 2 November 2017
Outcome
Interlocutory applications of New Orleans dismissed; proceeding to be heard in the List at 10.00 am on 2 November 2017; costs reserved; debtor ordered to pay creditor's disbursements to be fixed by the Registrar.
Legal Topics
Liquidation, Statutory Demand, Stay of Proceedings, Restraint on Advertising, Security for Debt, Leave to File Defence Out of Time, Presumption of Insolvency
Insolvency Company Law Tax Law Civil Procedure Liquidation Statutory Demand Stay of Proceedings Restraint on Advertising +3 more

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Parties

Commissioner of Inland Revenue

Judgment Creditor

New Orleans Hotel (2011) Limited

Judgment Debtor

Procedural Posture

Liquidation (creditor's Application) / Interlocutory Applications Dismissed; Hearing Adjourned to 2 November 2017

Legal Issues

  1. 1 Whether to stay liquidation proceeding and restrain advertising under r 31.11 High Court Rules
  2. 2 Whether to grant leave to file a statement of defence out of time under r 31.20 High Court Rules
  3. 3 Whether New Orleans is insolvent or presumed unable to pay its debts following failure to comply with statutory demand

Ratio Decidendi

New Orleans was and remains insolvent with an undisputed and increasing tax debt; the security proffered was inadequate or unsupported by admissible valuation and guarantees; there was no arguable defence to the debt and the Fresh Cut Flower threshold for leave to defend was not met; accordingly the Court refused to stay the liquidation proceeding or restrain advertising and refused leave to file a defence out of time.

Court Disposition

Interlocutory applications of New Orleans dismissed; proceeding to be heard in the List at 10.00 am on 2 November 2017; costs reserved; debtor ordered to pay creditor's disbursements to be fixed by the Registrar.

Orders

  • New Orleans' application to restrain advertising under r 31.11 dismissed
  • New Orleans' application to stay proceedings under r 31.11 dismissed