11 Sept 2019
90 NINE LIMITED v LUXURY RENTALS NZ LIMITED [2019] NZCA 424
- Citation
- (2019) 24 PRNZ 638
- Court
- Court of Appeal
Where the statutory prerequisites for a liquidation application based on an unsatisfied statutory demand are met, the court should not refuse liquidation solely on the ground that the likely cost of liquidation would be disproportionate to the debt; absent evidence of abuse or other compelling factors overcoming the creditor's prima facie entitlement under s 241(4), proportionality of costs is not a relevant basis to dismiss the application. The Associate Judge erred in relying on proportionality to refuse liquidation; matter remitted to High Court.