22 Dec 2014
FARRELL and ROGAN v MAX BIRT SAWMILLS LIMITED [2014] NZHC 3391
- Citation
- [2014] NZHC 3391
- Court
- High Court
In a continuing business relationship under s 292(4B) the correct approach is to measure any preference from the month of peak net indebtedness (absent commercially contemporaneous supplies/payments that negate indebtedness), calculating the preference by reference to the economic disparity in values of supplies/payments rather than the face value recorded in accounts; accordingly the liquidators' challenged transactions reducing indebtedness from the peak are voidable and must be set aside to the extent they conferred a preference, and the respondent failed to establish the mandatory s 296(3…