17 Feb 2011
STEVE MOWAT BUILDING & CONSTRUCTION LIMITED V BOAT HARBOUR HOLDINGS LIMITED HC CHCH CIV 2010-409-002698
- Citation
- openlaw-7f506de6_ffeb_4362_b183_f500933845f6.pdf
- Court
- High Court
The court found it was not plain that the prejudicial disposition argument could not succeed: there was a real prospect that the 18 August 2010 sale was an undervalue prejudicial disposition benefiting secured parties and shareholders at the expense of unsecured creditors. Given that and exercising the discretion under Land Transfer Act s143(2), the caveat was to be preserved subject to conditions (procure independent valuation within two months, plaintiff to initially fund valuation, and adding liquidators as second plaintiffs) rather than lapsing despite imperfect drafting.