14 Oct 2011
PIKE RIVER COAL LIMITED (IN RECEIVERSHIP) V O'MALLEY FARMING LIMITED HC WN CIV-2011-418-66
- Citation
- openlaw-2aec7fa1_77dc_4191_99ec_4b49c4fb4c86.pdf
- Court
- High Court
Relief against cancellation was granted for 24 months because, applying the Property Law Act and the established proportionality test, cancellation would be a disproportionate response: receivership was not shown to be the lessee's culpable fault, Ikamatua is a core asset to the sale process, the receivers demonstrated bona fide steps to preserve value and to mitigate prejudice (two years' rent payment, compliance with covenants and offer to sublease), and conditions adequately protect lessors' interests.