New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Set-off as payment
  • 13 Jun 2005

    TRANS OTWAY LTD V SHEPHARD AND ANOR CA CA98/04

    Citation
    openlaw-ffdff9d2_a04d_4f88_9588_3c7cd382313e.pdf
    Court
    Court of Appeal

    The Court held that the contractual set-off in the March agreement produced mutual payments: Newman discharged its debt of $94,996.73 to Trans Otway by agreement and that discharge constituted a "payment of money" by the debtor under s 292(1)(e); the elements of s 292(2)(b) were satisfied (payment within the relevant period, insolvency presumed, not in ordinary course and enabled Trans Otway to receive more than in liquidation), therefore the transaction was voidable and set aside.