RANOLF COMPANY LIMITED (IN LIQUIDATION) v BHANA [2017] NZHC 1816

RANOLF COMPANY LIMITED (IN LIQUIDATION) v BHANA [2017] NZHC 1816

Because the liable parties were not personally liable and the judgment charged the property to meet the company's debts, the Court, applying r6.8, dispensed with the further service otherwise required by r17.72 and ordered that the Sheriff need not make any demand or effect personal service before enforcing the sale; chattels need not be sold first.

Citation
[2017] NZHC 1816
Parties
Entitled Party: Ranolf Company Limited (in liquidation); First Liable Party: Ashok Dennis Bhana and Jasumatio Bhana as former trustees of the Ranolf Trust; Second Liable Party: Geyserland Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 August 2017
Procedural Posture
Trust Declaration and Enforcement in Liquidation / Post Judgment Enforcement Directions (sheriff)
Outcome
Court directed the Sheriff that no demand or personal service on the liable parties was required before enforcing the sale; service under r17.72 dispensed with; no need to sell chattels first; no order as to costs.
Legal Topics
Trustee Declaration, Charge of Property for Creditor Claims, Sale Under Court Charge, Substituted Service, Notice of Sale (r17.72), Fiduciary Obligations, Sheriff Enforcement
Trusts Insolvency Civil Procedure Property Law Trustee Declaration Charge of Property for Creditor Claims Sale Under Court Charge Substituted Service +3 more

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Parties

Ranolf Company Limited (in liquidation)

Entitled Party

Ashok Dennis Bhana and Jasumatio Bhana as former trustees of the Ranolf Trust

First Liable Party

Geyserland Limited

Second Liable Party

Procedural Posture

Trust Declaration and Enforcement in Liquidation / Post Judgment Enforcement Directions (sheriff)

Legal Issues

  1. 1 Whether the Sheriff is required to make demand on the liable parties prior to enforcing the sale order
  2. 2 Whether personal service of the notice of sale under High Court Rules r17.72 is required or substituted service may be relied upon
  3. 3 Whether chattels must be sold prior to sale of the charged properties under r17.77

Ratio Decidendi

Because the liable parties were not personally liable and the judgment charged the property to meet the company's debts, the Court, applying r6.8, dispensed with the further service otherwise required by r17.72 and ordered that the Sheriff need not make any demand or effect personal service before enforcing the sale; chattels need not be sold first.

Court Disposition

Court directed the Sheriff that no demand or personal service on the liable parties was required before enforcing the sale; service under r17.72 dispensed with; no need to sell chattels first; no order as to costs.

Orders

  • There is no need to make any demand on the liable parties before enforcing the order for sale.
  • There is no need to serve the liable parties with the notice under r17.72 of the High Court Rules (service dispensed with under r6.8).