THE COMMISSIONER OF INLAND REVENUE V THE CHALET ARTHURS PASS LIMITED HC GRY CIV-2006-418-000109

THE COMMISSIONER OF INLAND REVENUE V THE CHALET ARTHURS PASS LIMITED HC GRY CIV-2006-418-000109 29 May 2007IN THE HIGH COURT OF NEW ZEALAND GREYMOUTH REGISTRY CIV-2006-418-000109UNDER the Companies Act 1993 BETWEEN THE COMMISSIONER OF INLAND REVENUE Plaintiff AND THE CHALET ARTHURS PASS LIMITED Defendant Hearing: 29 May 2007 Appearances: A G Whitcombe for Plaintiff H Martin appears In Person for Defendant Judgment: 29 May 2007ORAL JUDGMENT OF ASSOCIATE JUDGE D I GENDALL[1] Before me is the plaintiff's application to place the defendant company into liquidation. [2] This application, according to the plaintiff's statement of claim, relates to a total debt of $85,632.05, being GST penalties and interest, income tax assessments, penalties and interest, and PAYE tax deductions penalties and interest unpaid by the defendant company. [3] The liquidation proceedings in this matter were commenced in August 2006. [4] The proceedings have been the subject of three adjournments to date, on the basis that discussions were taking place between the parties with a view to negotiating a settlement.[5] A settlement in this matter has not been achieved. [6] When this proceeding was last before the Court on 13 March 2007, it was noted that the adjournment until today was to be a final adjournment. [7] Mr Whitcombe, for the plaintiff, seeks an order that the defendant company be placed in liquidation. [8] Mr Martin, a director of the defendant company, appeared today and opposed any order for liquidation of the company. [9] As I understand his submissions, Mr Martin indicated to me that as a director of the defendant company, he felt some degree of obligation with respect to the debts of the company, and therefore wanted an opportunity to continue to trade the company on a basis which might in time allow settlement of its debts. [10] Before me, however, Mr Martin confirmed that in addition to the debt outstanding to the plaintiff here, the defendant company had a debt owing to him personally of some $500,000. He also confirmed that the company had no assets. [11] On this basis, there can be no doubt whatever that the defendant company is insolvent. It is unfortunate that Mr Martin has been unable to make some arrangements from outside sources for funds to be injected into the defendant company to settle the debt to the plaintiff. [12] Notwithstanding that, it seems clear that given the insolvency of the company, there is little alternative but for an order for liquidation to be made. [13] That said, the following orders are now made: a) An order is made that the defendant company, The Chalet Arthurs Pass Limited, is placed into liquidation. b) Paul William Gerard Jenkins and Iain Andrew Nellies are appointed liquidators.c) Costs are awarded to the plaintiff on a category 2B basis, together with disbursements as fixed by the Registrar. [14] This order is timed at 10.29 a.m. ________________________Associate Judge D I GendallSolicitors: Crown Solicitor, Invercargill H Martin, Arthurs Pass