New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Solvency tests (cashflow vs balance sheet)
  • 4 Jun 2021

    KHURANA TRUSTEE LIMITED v CASTLE BACKPACKER K ROAD LIMITED [application for leave to appeal and costs] [2021] NZHC 1315

    Citation
    [2021] NZHC 1315
    Court
    High Court

    Leave to appeal was refused because the applicant failed to identify arguable errors of law of general or public importance or errors of sufficient importance to outweigh the high threshold for interlocutory appeals; the cash-flow test governs solvency under s241 and insolvency, while an important factor, is not invariably decisive; the alleged errors advanced by Khurana were either not established, were matters to be examined on the substantive hearing, or arose from a misreading of the earlier judgment.

    • Leave to appeal
    • Extension of time to file defence
    • Solvency tests (cashflow vs balance sheet)
    • Costs assessment
    • Interlocutory appeals