6 Apr 2006
SINTEL-COM LIMITED (IN LIQUIDATION) V TELECOM NEW ZEALAND LIMITED HC AK CIV 2004-404-1677
- Citation
- openlaw-a389d233_1d58_4202_8e53_532895bc8cd0.pdf
- Court
- High Court
The court held that an assignment by way of mortgage of choses in action does not, by itself, bar the assignor (or its liquidators) from suing to recover those choses provided the assignee's interests are protected; the debenture covenant did not prevent Sintel's liquidators pursuing the claims because the proposed litigation would not prejudice the security holder and, even if consent were required, Telecom could not withhold consent for an improper collateral purpose; accordingly the strike out application failed and Sintel may pursue the causes of action subject to protecting the debenture…