Commissioner of Inland Revenue v Chesterfields Preschools Limited

[2015] NZHC 482

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2015-409-000043 [2015] NZHC 482

BETWEEN

THE COMISSIONER OF INLAND

REVENUE Plaintiff

AND

CHESTERFIELDS PRESCHOOLS LIMITED

Defendant

Hearing:	16 March 2015
Appearances:	P J Shamy and S Kinsler for Plaintiff R W Maze for Defendant
Judgment:	16 March 2015

ORAL JUDGMENT OF GENDALL J

[1]      As part of the Court’s consideration of a matter concerning these parties which was before the Court today, an issue was raised by Mr Shamy on behalf of the Commissioner of Inland Revenue.   This concerned the terms of a freezing order which  it  is  said  was  in  place  regarding  assets  of  the  defendant  company, Chesterfields Preschools Limited.

[2]      Some time ago this Court, it seems, made a freezing order in relation to certain assets of the defendant company which included monies held at the ANZ Bank.

[3]      I am told that certain issues may have arisen with the ANZ Bank and some questions of uncertainty which the Bank may have concerning the terms of the

earlier orders made by this Court.

THE COMISSIONER OF INLAND REVENUE v CHESTERFIELDS PRESCHOOLS LIMITED [2015] NZHC

482 [16 March 2015]

[4]      As result today Mr Shamy, counsel for the plaintiff, has requested that on an interim basis a formal order is made by this Court confirming freezing orders in relation to three matters:

(a)       First, funds held by the ANZ Bank in certain term deposit accounts with respect to the defendant company;

(b)      The property at 854 Colombo Street, Christchurch;

(c)       Certain  proceeds  of  sale  of  a  property  at  67  Augusta  Street, Christchurch, held by the Official Assignee as trustee.

[5]      Mr Maze, appeared today as counsel for the defendant company relating to a separate application made for release of certain funds.  He indicated, understandably in view of his only recent involvement with the defendant company, that he had no instructions with respect to the freezing order confirmation sought by the plaintiff today.

[6]      Mr Maze said as a result that he could not formally oppose that application but nor did  he  have  any instructions  to  advise  that  it  was  not  opposed  by the defendant company.

[7]      The position, as I understand it, appears at the moment to be somewhat unsatisfactory.  What seems clear is that if there may be any doubt as to the terms of the previous freezing orders made in this Court that at least on an interim basis that doubt should be clarified.

[8]      That said, under all the circumstances here, I am satisfied that on an interim basis a freezing order here in clear terms should now be confirmed.

[9]      This  Court  now,  therefore,  makes  an  order  confirming  a  freezing  order relating to the following assets:

(a)       The property at 854 Colombo Street, Christchurch CB20F/316;

(b)      The  funds  held  by  the  ANZ  Bank  in  term  deposit  accounts

088056229-1000 and 088056229-1001; and

(c)       The  proceeds  of  the  sale  of  the  property  at  67  Augusta  Street, Christchurch, held by the Official Assignee as trustee.

[10]     This  order  is  to  restrain  the  removal  of  any  of  the  assets  listed  in  the preceding paragraph from New Zealand or from any disposing of dealing with, or diminishing the value of, those assets pending further order of this Court.

[11]     As I have noted above, this is an interim order until further order of this Court is made.  Leave is reserved for any party on 72 hours’ notice to make formal supported  application  to  this  Court  for  any variation  of this  order that  may be properly required.

...................................................

Gendall J

Addendum

[12]     One other matter was raised at the conclusion of proceedings today, 16 March

2015.     This  related  to  an  undertaking  which  was  given  by  Theresa  Sisson (Ms Sisson) to this Court on 8 November 2007.   At that time Ms Sisson was a barrister and solicitor of this Court but, as I understand it, subsequently she was struck off.

[13]     Mr Shamy and Mr Maze both confirm today that given the interim freezing orders made above, this undertaking given by Ms Sisson should no longer stand.

[14]     I now make a direction and order that this 8 November 2007 undertaking of Ms Sisson no longer stands and has been superseded by the freezing orders made today.

...................................................

Gendall J

Solicitors:

Philip Shamy, Christchurch

Meredith Connell, Wellington Branch

Richard Maze, Christchurch