18 Feb 2011
SHEPHARD & ANOR AS LIQUIDATORS OF DERMAC INVESTMENTS LIMITED (IN LIQ) v KILBIRNIE PLYMOUTH INVESTMENTS LIMITED HC WN CIV-2009-485-2397
- Citation
- openlaw-34cc86f2_1752_4b83_b54c_30f8571b0436.pdf
- Court
- High Court
The set-off of prior advances to satisfy the deposit constituted a "payment of money" transaction under s292(1)(e); it was entered into while Dermac was unable to pay its debts, was not in the ordinary course of Dermac's business but a response to insolvency that preferred Kilbirnie over other creditors, Kilbirnie failed to establish good faith or reasonable alteration of position in reliance on validity, and therefore the transaction was voidable and must be set aside with repayment of the full sum received ($2,140,000).