New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Surrender of security

Legal area

Court

11 Dec 2014

GRANT AND KHOV (AS LIQUIDATORS OF WEST HARBOUR HOLDINGS LTD) v WAIPAREIRA INVESTMENTS LTD CA60/2014 [2014] NZCA 607

Citation

[2014] NZCA 607
Court

Court of Appeal

Reg 22(2) applies only where a secured creditor is entitled to vote as an unsecured creditor (i.e. has validly elected under s305 and made the prescribed claim admitted for voting). A secured creditor who remains secured and has not made the prescribed claim is not entitled to vote and cannot be taken to have surrendered its charge by an invalid vote; regulations cannot be read to divest property rights inconsistent with the Act.
10 Dec 2013

WAIPAREIRA INVESTMENTS LIMITED v DAMIEN GRANT and KIRSTEN SMITH as liquidators of West Harbour Holdings Limited (in liq) [2013] NZHC 3281

Citation

[2013] NZHC 3281
Court

High Court

The proof of debt form completed for Waipareira was fundamentally deficient and did not comply with the prescribed Form 2 required by s 305(4); therefore Waipareira did not validly elect to value its security and prove as an unsecured creditor, remained a secured creditor outside the definition of 'creditor' in s 240, reg 22(2) did not apply, the vote purportedly cast on its behalf was of no legal effect, and its security was not surrendered.