GRANT AND KHOV as liquidators of RANOLF COMPANY LTD (In liquidation) v BHANA [2018] NZHC 1527

GRANT AND KHOV as liquidators of RANOLF COMPANY LTD (In liquidation) v BHANA [2018] NZHC 1527

Liquidators were entitled to indemnity costs despite using in-house counsel because the in-house time was billed to the company by invoice and the liquidators acted in a representative capacity; the court fixed actual and reasonable indemnity costs at $41,330.00 and disbursements at $4,001.09 and refused to reserve costs pending appeal.

Citation
[2018] NZHC 1527
Parties
Applicants: Damien Grant and Steven Khov as liquidators of Ranolf Company Ltd (In liquidation); First Respondent: Stephen Bhana; Second Respondent: Jasu Mati Bhana
Court
High Court
Jurisdiction
New Zealand
Judgment Date
25 June 2018
Procedural Posture
Contempt Application in Liquidation Proceedings / Costs Determination (indemnity Costs)
Outcome
Applicants' (liquidators') indemnity costs and disbursements awarded; respondents ordered to pay specified sums; costs not reserved pending appeal.
Legal Topics
Liquidators' Costs, In House Counsel Costs, Indemnity Costs, Service of Process, Appeal Reservation
Insolvency Civil Procedure Contempt of Court Costs Liquidators' Costs In House Counsel Costs Indemnity Costs Service of Process +1 more

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Parties

Damien Grant and Steven Khov as liquidators of Ranolf Company Ltd (In liquidation)

Applicants

Stephen Bhana

First Respondent

Jasu Mati Bhana

Second Respondent

Procedural Posture

Contempt Application in Liquidation Proceedings / Costs Determination (indemnity Costs)

Legal Issues

  1. 1 Whether liquidators represented by in-house counsel are entitled to costs
  2. 2 Whether indemnity costs should be awarded and, if so, the quantum of actual and reasonable costs
  3. 3 Whether costs should be reserved pending appeal

Ratio Decidendi

Liquidators were entitled to indemnity costs despite using in-house counsel because the in-house time was billed to the company by invoice and the liquidators acted in a representative capacity; the court fixed actual and reasonable indemnity costs at $41,330.00 and disbursements at $4,001.09 and refused to reserve costs pending appeal.

Court Disposition

Applicants' (liquidators') indemnity costs and disbursements awarded; respondents ordered to pay specified sums; costs not reserved pending appeal.

Orders

  • The First and Second Respondents are ordered to pay the Applicants (liquidators) $41,330.00 as actual and reasonable costs
  • The First and Second Respondents are ordered to pay the Applicants (liquidators) $4,001.09 for disbursements