25 Jul 2013
FARRELL AND ROGAN AS LIQUIDATORS OF CONTRACT ENGINEERING LIMITED (IN RECEIVERSHIP AND IN LIQUIDATION) v FENCES & KERBS LIMITED CA773/2012 [2013] NZCA 329
- Citation
- [2013] NZCA 329
- Court
- Court of Appeal
Mere receipt of payment in satisfaction of an antecedent debt does not constitute 'value' under s 296(3) of the Companies Act 1993; instead the creditor must have given new value at the time of receipt that is real and substantial (forbearance may qualify only if it is real and substantial and evidenced); accordingly the impugned payments were set aside and amounts recovered with interest; High Court insolvency finding upheld.