Commissioner of Inland Revenue v For Finance Limited HC Christchurch CIV 2006-470-702

[2007] NZHC 1605

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

CIV-2006-470-000702

IN THE MATTER OF     The Companies Act 1993

BETWEEN  THE COMMISSIONER OF INLAND REVENUE

Plaintiff

AND  FOR FINANCE LIMITED Defendant

Hearing:         12 February 2007

Appearances: H R Sumner for Plaintiff

Judgment:      12 February 2007

REASONS FOR JUDGMENT OF ASSOCIATE JUDGE CHRISTIANSEN Upon Interlocutory Application to Place Defendant into Liquidation

[1]      On 30 January 2007 I delivered a brief judgment upon my dismissal of the defendant’s application to set aside the plaintiff’s statutory demand.  At that time I extended until 4 p.m. 9 February 2007 the time for compliance with the plaintiff’s statutory demand.  Also I adjourned the proceeding until today to enable the plaintiff to consider the options available to him.

[2]      When this matter was called before me this morning the plaintiff applied for the defendant’s liquidation for the appointment of Messrs Deuchrass and Nellies as liquidators.   In advance of today’s hearing the Court received by facsimile a memorandum from a Hamilton solicitor advising the defendant was instructing new counsel and stating that a Mr G Fisher would be appearing as agent for the defendant when the matter was called.  This solicitor mentioned Mr Fisher would be applying

to have the proceedings transferred to Hamilton.

THE COMMISSIONER OF INLAND REVENUE V FOR FINANCE LIMITED HC CHCH CIV-2006-470-

000702  12 February 2007

[3]      This morning when the matter was called no counsel appeared on instructions from the  solicitor.    Instead  Mr  Fisher  appeared.    He  confirmed  he  wished  the proceedings adjourned and to be transferred to Hamilton.  I informed Mr Fisher that his applications were refused.  Shortly afterwards I made an order for the defendant’s liquidation.  My reasons:

i)        Following  the  hearing  before  me  on  30  January  2007  the defendant was advised to pay the amount in the statutory demand to the Commissioner’s Christchurch office.

ii)        The defendant did not make payment in time or at all.

iii)      It was apparent to me when I dismissed the defendant’s setting aside application that there was not a substantial dispute regarding its liability to meet the statutory demand.

iv)      Since  30  January 2007  the  defendant  has taken  no  step  to challenge my decision of that date, nor has it paid the debt due.

v)       The company is presumed to be unable to pay its debts.  The Court has received the consent of two persons prepared to be appointed as liquidators.

[4]      In the circumstances I made an order for the defendant’s liquidation, and appointed Mr W J Deuchrass and Mr I A Nellies as liquidators.  Also I fixed costs on a category 2B basis and ordered disbursements to be paid as fixed by the Registrar.

[5]      The time of the order for liquidation I noted at 11.07 a.m.

Solicitors:

Inland Revenue Department, Christchurch, Plaintiff