COASTAL PROPERTIES LIMITED v ALL SAFE SCAFFOLD LIMITED [2016] NZHC 3107

COASTAL PROPERTIES LIMITED v ALL SAFE SCAFFOLD LIMITED [2016] NZHC 3107

The applicant failed to establish an arguable and substantial dispute: contemporaneous invoices and emails constituted persuasive evidence of indebtedness of $54,372.60; the alleged oral novation and asserted offset were uncorroborated and implausible on the affidavit material; the claim the debt belonged to another company was raised late and not properly proved, therefore the statutory demand stands and must be paid.

Citation
[2016] NZHC 3107
Parties
Plaintiff/applicant: Coastal Properties Ltd; Defendant/respondent: All Safe Scaffold Ltd
Court
High Court
Jurisdiction
New Zealand
Judgment Date
12 December 2016
Procedural Posture
Companies Act 1993 S290 Application to Set Aside Statutory Demand / Hearing and Oral Judgment on Application to Set Aside Statutory Demand
Outcome
Application dismissed; statutory demand upheld
Legal Topics
Statutory Demand, Set Aside, Novation, Set Off, Evidentiary Standard, Costs
Company Law Insolvency Civil Procedure Statutory Demand Set Aside Novation Set Off Evidentiary Standard +1 more

Case Brief

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 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Coastal Properties Ltd

Plaintiff/applicant

All Safe Scaffold Ltd

Defendant/respondent

Procedural Posture

Companies Act 1993 S290 Application to Set Aside Statutory Demand / Hearing and Oral Judgment on Application to Set Aside Statutory Demand

Legal Issues

  1. 1 Whether there is a genuine and substantial dispute under s290(4)(a) of the Companies Act 1993
  2. 2 Whether an alleged novation/offset agreement between parties discharged the debt
  3. 3 Whether the debtor was correctly identified or another company was the true debtor

Ratio Decidendi

The applicant failed to establish an arguable and substantial dispute: contemporaneous invoices and emails constituted persuasive evidence of indebtedness of $54,372.60; the alleged oral novation and asserted offset were uncorroborated and implausible on the affidavit material; the claim the debt belonged to another company was raised late and not properly proved, therefore the statutory demand stands and must be paid.

Court Disposition

Application dismissed; statutory demand upheld

Orders

  • Coastal Properties Ltd to pay All Safe Scaffold Ltd $54,372.60 by 31 January 2017
  • In absence of payment All Safe Scaffold Ltd entitled to apply for liquidation of Coastal Properties Ltd