Chatham Islands Management Limited v Chatham Hardware Limited

[2023] NZHC 562

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2023-409-38

[2023] NZHC 562

UNDER

Section 241 of the Companies Act 1993 and Part 31 of the High Court Rules 2016

IN THE MATTER

of an application to put a company into liquidation

BETWEEN

CHATHAM ISLANDS MANAGEMENT LIMITED

Plaintiff

AND

CHATHAM HARDWARE LIMITED

Defendant

Hearing:	20 March 2023
Appearances:	P R W Chisnall and M R G van Alphen Fyfe for Plaintiff E J Tait for Defendant
Judgment:	20 March 2023

JUDGMENT OF ASSOCIATE JUDGE LESTER

(stay application)

CHATHAM ISLANDS MANAGEMENT LIMITED v CHATHAM HARDWARE LIMITED [2023] NZHC 562 [20 March 2023]

[1]                  Chatham Hardware Limited’s application for a stay of this winding up proceeding was scheduled for hearing on the morning of 20 March 2023. Counsel had filed submissions and the matter was ready to proceed.

[2]                  At the commencement of the hearing, Mr Tait, counsel for the defendant, advised that the amount in issue in this proceeding had been paid by his client into the trust account of an independent solicitor. The intention is that the disputed amount would be held pending the hearing of Chatham Hardware Ltd’s appeal against the decision of Associate Judge Johnston of 13 December 2022, declining Chatham Hardware Ltd’s application to set aside the statutory demand issued by Chatham Islands Management Limited.1

[3]After some discussion the following consent order was made by consent:

Proceeding CIV-2023-409-38 is stayed pending further order of the Court until the outcome of CA33/2023 is known upon the condition that Chatham Hardware Ltd shall forthwith pay into Court $220,000 to be held in the name of Chatham Islands Management Ltd on interest bearing deposit pending further order of the Court or agreement in writing of the parties. Costs of the application to stay the liquidation are reserved.

[4]This proceeding is to be removed from the liquidation list on 23 March 2023.

[5]Leave is reserved for either party to apply further should the need arise.

Associate Judge Lester

Solicitors:

Macalister Mazengarb, Wellington (for Plaintiff) E J Tait, Lawyer, Christchurch (for Defendant)

Copy to counsel:
P R W Chisnall and M R G van Alphen Fyfe, Barristers, Wellington (for Plaintiff)

1      Chatham Hardware Ltd v Chatham Island Management Ltd [2022] NZHC 3227.