SMARTPAY LTD v KUMAR [2023] NZHC 314
Smartpay, having brought and incurred the costs of the proceeding and having succeeded on the claim, is entitled to 2B costs and disbursements of $86,452.14; second counsel was not justified for certification; applicable interest under the Interest on Money Claims Act 2016 is quantified at $173,086.22 based on the...
Source-derived case information.
- Citation
- [2023] NZHC 314
- Parties
- Plaintiff: Smartpay Ltd; Defendant: Manas Dharmendra Kumar
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 28 February 2023
- Procedural Posture
- Civil Proceeding Concerning Breach of Directors' Duties in the Liquidation of 4468440 Limited / Costs and Interest Quantification Judgment
- Outcome
- Plaintiff awarded costs and quantified interest; Defendant held liable for costs and interest.
- Legal Topics
- Directors' Duties, Liquidation, Costs Awards (scale 2 B), Interest on Money Claims Act 2016 Quantification
Source-derived case record
Summary, issues, holding and outcome
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Parties
Smartpay Ltd
Plaintiff
Manas Dharmendra Kumar
Defendant
Procedural Posture
Civil Proceeding Concerning Breach of Directors' Duties in the Liquidation of 4468440 Limited / Costs and Interest Quantification Judgment
Legal Issues
- 1 Whether Smartpay as plaintiff is entitled to costs for proceedings enforcing company rights
- 2 Whether second counsel certification was justified
- 3 What interest is payable under the Interest on Money Claims Act 2016 and whether it should be quantified now
Ratio Decidendi
Smartpay, having brought and incurred the costs of the proceeding and having succeeded on the claim, is entitled to 2B costs and disbursements of $86,452.14; second counsel was not justified for certification; applicable interest under the Interest on Money Claims Act 2016 is quantified at $173,086.22 based on the known compensation payable to the company of $850,427.43, and Mr Kumar is liable for those sums.
Court Disposition
Plaintiff awarded costs and quantified interest; Defendant held liable for costs and interest.
Orders
- Defendant Manas Dharmendra Kumar to pay Smartpay Ltd costs and disbursements totalling $86,452.14
- Applicable interest under the Interest on Money Claims Act 2016 quantified at $173,086.22
Full Case Text
Judgment text and source record
1 paragraphs
SMARTPAY LTD v KUMAR [2023] NZHC 314 [28 February 2023]IN THE HIGH COURT OF NEW ZEALANDAUCKLAND REGISTRYI TE KŌTI MATUA O AOTEAROATĀMAKI MAKAURAU ROHECIV-2020-404-001775[2023] NZHC 314IN THE MATTER OF the liquidation of 4468440 Limited(previously known as Optimizer CorporationLimited)BETWEEN SMARTPAY LIMITEDPlaintiffAND MANAS DHARMENDRA KUMARDefendantHearing: On the papersJudgment: 28 February 2023JUDGMENT OF DOWNS J(Costs)This judgment was delivered by me on Tuesday, 28 February 2023 at 11 ampursuant to r 11.5 of the High Court Rules.Registrar/Deputy RegistrarSolicitors/Counsel:Claymore Partners Ltd, Auckland.Haigh Lyon, Auckland.DJ Chisholm KC, Auckland.M Taylor-Cyphers, Auckland.[1] Smartpay Ltd, or Smartpay, was successful in its action against Manas Kumarthat he breached his obligations as a company director.1 Smartpay seeks 2B costs2 andquantification of interest under the Interest on Money Claims Act 2016.[2] Mr Kumar contends Smartpay should not have costs; rather, these should beawarded to the company whose obligations Mr Kumar breached. I disagree for thesimple reason Smartpay incurred the costs in bringing the action against Mr Kumar.[3] Smartpay's calculation of costs includes $5,975 for second counsel. I am notpersuaded second counsel justifies certification (though I accept second counsel wouldhave been helpful to the plaintiff). So, costs and disbursements come to $86,452.14,not $92,427.14.[4] Quantification of interest under the Interest on Money Claims Act produces afigure of $173,086.22. Mr Kumar requests interest not be quantified now. He says itwould be better to wait until all creditors have filed claims. It is not clear this wouldaffect the position, as the interest figure is based on the amount of compensationpayable to the company, and this is already known ($850,427.43).Result[5] Mr Kumar is liable for 2B costs and disbursements totalling $86,452.14.[6] Applicable interest is $173,086.22...Downs J1 Smartpay Ltd v Kumar [2022] NZHC 997 and Smartpay Ltd v Kumar [2022] NZHC 2685.2 And disbursements.