JOHNSTONE v CBL [2019] NZHC 2101

JOHNSTONE v CBL [2019] NZHC 2101

Leave to serve CBLIE overseas was granted because the liquidators' notice arises under the Companies Act and the relevant acts and loss have a sufficient connection to New Zealand (transactions effected and payments made in New Zealand by a New Zealand company), bringing the matter within High Court Rule 6.27(2)(j) and permitting service out of New Zealand without leave; the Companies Act provisions for service did not apply because CBLIE was not on the NZROC and had no NZ place of business.

Citation
[2019] NZHC 2101
Parties
Applicants: Kare Johnstone and Andrew John Grenfell as Liquidators of CBL Insurance Limited (in liquidation); Intended Recipient of Notice: CBL Insurance Europe DAC (Ireland) (Under Administration)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
26 August 2019
Procedural Posture
Insolvency Liquidation (voidable Transaction Claim) / Application for Directions as to Service (leave to Serve Overseas)
Outcome
Order granting leave to serve CBL Insurance Europe DAC (Ireland) overseas
Legal Topics
Voidable Transactions, Service Out of Jurisdiction, Service of Process Under Companies Act 1993, High Court Rules Rr 6.27 6.28
Companies Law Insolvency Law Civil Procedure Voidable Transactions Service Out of Jurisdiction Service of Process Under Companies Act 1993 High Court Rules Rr 6.27 6.28

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Parties

Kare Johnstone and Andrew John Grenfell as Liquidators of CBL Insurance Limited (in liquidation)

Applicants

CBL Insurance Europe DAC (Ireland) (Under Administration)

Intended Recipient of Notice

Procedural Posture

Insolvency Liquidation (voidable Transaction Claim) / Application for Directions as to Service (leave to Serve Overseas)

Legal Issues

  1. 1 Whether the liquidators' notice under s 294 of the Companies Act must be served on CBLIE outside New Zealand and by what method
  2. 2 Whether ss 387-392 (in particular ss 389-390) of the Companies Act permit service on CBLIE
  3. 3 Whether High Court Rule 6.27(2)(j) permits service out of New Zealand without leave in these circumstances

Ratio Decidendi

Leave to serve CBLIE overseas was granted because the liquidators' notice arises under the Companies Act and the relevant acts and loss have a sufficient connection to New Zealand (transactions effected and payments made in New Zealand by a New Zealand company), bringing the matter within High Court Rule 6.27(2)(j) and permitting service out of New Zealand without leave; the Companies Act provisions for service did not apply because CBLIE was not on the NZROC and had no NZ place of business.

Court Disposition

Order granting leave to serve CBL Insurance Europe DAC (Ireland) overseas

Orders

  • Leave to serve CBL Insurance Europe DAC (Ireland) out of New Zealand is granted.
  • There shall be an order directing service on CBL Insurance Europe DAC (Ireland) overseas.