20 May 2015
V J MADSEN REIS AND H D LEVIN v DONOVAN DRAINAGE AND EARTH MOVING LIMITED [2015] NZHC 1081
- Citation
- [2015] NZCCLR 13
- Court
- High Court
The application was dismissed because the respondent demonstrated it acted in good faith, gave value and a reasonable person in the respondent's position would not have had reasonable grounds to suspect the Company's insolvency given the commercial context and industry practices; therefore the s296(3) defence applies and the payments are not recoverable.
- Voidable transactions
- Preferences
- S296 good faith defence
- Insolvency test
- Running account