SHARMA v MUNDATH (No.2) [2019] NZHC 266

SHARMA v MUNDATH (No.2) [2019] NZHC 266

The court will accept and adopt plaintiffs' transaction schedules at the summary judgment standard and a sealed judgment need not itemise interest calculations for each transaction; the Interest on Money Claims Act requires that interest be awarded and specified as to the initial amount and that further interest runs on the amounts of equitable compensation from the judgment date, but the Act does not permit interest to run on interest already accrued (no compounding).

Citation
[2019] NZHC 266
Parties
Plaintiffs: Data Ram Sharma and Ganesh Dixit as trustees of the Sharma Family Trust (with 33 others); First Defendant: Mujeeb Rahiman Mundath; Second Defendant: Afsheen Mujeeb; Third Defendant: Fulcrum Management Construction Limited; Fourth Defendant: Mudra Investments NZ Limited; Fifth Defendant: Sujin Hwang; Sixth Defendant: Koyama Pty Ltd
Court
High Court
Jurisdiction
New Zealand
Judgment Date
26 February 2019
Procedural Posture
Summary Judgment for Equitable Compensation / Judgment Given and Sealed; Application for Sealing Orders Under High Court Rules
Outcome
Summary judgment for plaintiffs entered; judgment for $4,696,758.31 in favour of the plaintiffs was sealed in amended form adopting plaintiffs' schedules and recording continuing interest from 24 January 2019
Legal Topics
Summary Judgment, Equitable Compensation, Pre Judgment Interest, Interest on Money Claims Act 2016, Sealing of Judgment
Civil Procedure Equity Interest Law Summary Judgment Equitable Compensation Pre Judgment Interest Interest on Money Claims Act 2016 Sealing of Judgment

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Parties

Data Ram Sharma and Ganesh Dixit as trustees of the Sharma Family Trust (with 33 others)

Plaintiffs

Mujeeb Rahiman Mundath

First Defendant

Afsheen Mujeeb

Second Defendant

Fulcrum Management Construction Limited

Third Defendant

Mudra Investments NZ Limited

Fourth Defendant

Sujin Hwang

Fifth Defendant

Koyama Pty Ltd

Sixth Defendant

Procedural Posture

Summary Judgment for Equitable Compensation / Judgment Given and Sealed; Application for Sealing Orders Under High Court Rules

Legal Issues

  1. 1 Whether a sealed judgment must specify interest separately for each underlying transaction when interest is awarded under the Interest on Money Claims Act 2016
  2. 2 Whether interest under the Act compounds (i.e. whether interest runs on interest already accrued)
  3. 3 Proper form of orders for sealing where extensive transactional calculations underpin awarded sums

Ratio Decidendi

The court will accept and adopt plaintiffs' transaction schedules at the summary judgment standard and a sealed judgment need not itemise interest calculations for each transaction; the Interest on Money Claims Act requires that interest be awarded and specified as to the initial amount and that further interest runs on the amounts of equitable compensation from the judgment date, but the Act does not permit interest to run on interest already accrued (no compounding).

Court Disposition

Summary judgment for plaintiffs entered; judgment for $4,696,758.31 in favour of the plaintiffs was sealed in amended form adopting plaintiffs' schedules and recording continuing interest from 24 January 2019

Orders

  • Summary judgment entered for the plaintiffs for $4,696,758.31 and equitable compensation amounts as per the sealed schedule
  • Registrar directed to seal the judgment in terms of the plaintiffs' draft order as amended to specify that further interest under the Interest on Money Claims Act 2016 shall run on the amounts of equitable compensation with a start date of 24 January 2019