POWERNET LIMITED v THE REGISTRAR OF COMPANIES [2022] NZHC 2736
Applied Intelligence Ltd was restored because restoration was necessary to enforce PowerNet’s judgment, the Registrar consented, the Treasury had no objection, relevant parties did not oppose, and the company was unable to pay the debt; accordingly immediate liquidation and appointment of a qualified liquidator with...
Source-derived case information.
- Citation
- [2022] NZHC 2736
- Parties
- Plaintiff: PowerNet Limited; Defendant: The Registrar of Companies; Company to Be Restored: Applied Intelligence Ltd
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 20 October 2022
- Procedural Posture
- Application for Restoration of Company to Companies Register and Ancillary Liquidation Order / Determined on the Papers; Judgment 20 October 2022
- Outcome
- Applied Intelligence Limited restored to the New Zealand Companies Register and placed into liquidation; Iain Andrew Nellies appointed liquidator; liquidator's fees approved; no order for costs.
- Legal Topics
- Restoration to Companies Register, Compulsory Liquidation, Appointment of Liquidator, Enforcement of Judgment, Service and Consent
Source-derived case record
Summary, issues, holding and outcome
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Parties
PowerNet Limited
Plaintiff
The Registrar of Companies
Defendant
Applied Intelligence Ltd
Company to Be Restored
Procedural Posture
Application for Restoration of Company to Companies Register and Ancillary Liquidation Order / Determined on the Papers; Judgment 20 October 2022
Legal Issues
- 1 Whether Applied Intelligence Ltd should be restored to the Companies Register
- 2 Whether the company should be placed into liquidation upon restoration
- 3 Whether the absence of statutory demand and advertising precludes liquidation
Ratio Decidendi
Applied Intelligence Ltd was restored because restoration was necessary to enforce PowerNet’s judgment, the Registrar consented, the Treasury had no objection, relevant parties did not oppose, and the company was unable to pay the debt; accordingly immediate liquidation and appointment of a qualified liquidator with approved fees was appropriate.
Court Disposition
Applied Intelligence Limited restored to the New Zealand Companies Register and placed into liquidation; Iain Andrew Nellies appointed liquidator; liquidator's fees approved; no order for costs.
Orders
- Applied Intelligence Limited is restored to the New Zealand Companies Register.
- Upon registration the company is placed into liquidation; the time of the order of liquidation is the time the company is restored to the Register.
Full Case Text
Judgment text and source record
1 paragraphs
POWERNET LIMITED v THE REGISTRAR OF COMPANIES [2022] NZHC 2736 [20 October 2022]IN THE HIGH COURT OF NEW ZEALANDINVERCARGILL REGISTRYI TE KŌTI MATUA O AOTEAROAWAIHŌPAI ROHECIV-2022-425-59[2022] NZHC 2736BETWEEN POWERNET LIMITEDPlaintiffAND THE REGISTRAR OF COMPANIESDefendantHearing: (Determined on the Papers)Counsel: A D G Hitchcock for PlaintiffNo appearance for DefendantJudgment: 20 October 2022JUDGMENT OF ASSOCIATE JUDGE LESTER[1] PowerNet Ltd (PowerNet) has applied for an order that AppliedIntelligence Ltd (AIL) be restored to the Companies Register (the Register).[2] AIL was removed from the Register on 26 May 2022 as a result of it failing tofile an annual return. However, at that time, AIL was a defendant in proceedings inthis Court. Judgment was entered against AIL on 19 July 2022.[3] PowerNet seeks to have AIL restored to the Register to enable it to recovera judgment that it obtained against one of the directors and shareholders of AIL.[4] In accordance with the requirements of Re Durweston Properties Ltd theapplication has been served on the Registrar of Companies.1 The Registrar's consentis before the Court. In addition, the Secretary to the Treasury has been served, whohas confirmed they have no objection to the restoration of the company to the Register.[5] The directors and the shareholders of AIL have also been served and plaintiff'scounsel advises the orders sought are not opposed and that they intend to abide thedecision of the Court.[6] In addition to AIL being restored to the Register, an order is sought that thecompany be placed into liquidation given it is unable to pay the substantial judgmentobtained by PowerNet.[7] In my view, it is appropriate that upon AIL being restored to the Register thatit be placed in liquidation. That the normal process of the filing of a statutory demandand advertising has not been followed in this case, is not material. There is no doubtthat the company cannot pay the debt it owes PowerNet. The liquidation will beadvertised in the ordinary way so any other creditor will receive notice of theliquidation. The proposed liquidator is experienced and known to the Court and willthoroughly investigate the company's affairs to identify if there are other creditors.[8] Accordingly, there is an order restoring Applied Intelligence Limited tothe New Zealand Companies Register. Upon registration the company is to be placed1 Re Durweston Properties Ltd (1992) 1 NZPC 945 (HC).in liquidation. The time of the order of liquidation shall be the time that the companyis restored to the Register.[9] Iain Andrew Nellies, insolvency practitioner of Dunedin, is appointedliquidator of the company. His fees, as set out in his affidavit of 18 October 2022, areapproved.[10] As no order for costs in respect of the restoration of the company to the Registeris sought, no order for costs is made.___________________________Associate Judge Lester