Powernet Limited v Registrar of Companies

[2022] NZHC 2736

IN THE HIGH COURT OF NEW ZEALAND INVERCARGILL REGISTRY

I TE KŌTI MATUA O AOTEAROA WAIHŌPAI ROHE

CIV-2022-425-59

[2022] NZHC 2736

BETWEEN

POWERNET LIMITED

Plaintiff

AND

THE REGISTRAR OF COMPANIES

Defendant

Hearing:	(Determined on the Papers)
Counsel:	A D G Hitchcock for Plaintiff No appearance for Defendant
Judgment:	20 October 2022

JUDGMENT OF ASSOCIATE JUDGE LESTER

POWERNET LIMITED v THE REGISTRAR OF COMPANIES [2022] NZHC 2736 [20 October 2022]

[1]    PowerNet Ltd (PowerNet) has applied for an order  that  Applied  Intelligence Ltd (AIL) be restored to the Companies Register (the Register).

[2]    AIL was removed from the Register on 26 May 2022 as a result of it failing to file an annual return. However, at that time, AIL was a defendant in proceedings in this Court. Judgment was entered against AIL on 19 July 2022.

[3]    PowerNet seeks to have AIL restored to the Register to enable it to recover    a judgment that it obtained against one of the directors and shareholders of AIL.

[4]    In accordance with the requirements of Re Durweston Properties Ltd the application has been served on the Registrar of Companies.1 The Registrar’s consent is before the Court. In addition, the Secretary to the Treasury has been served, who has confirmed they have no objection to the restoration of the company to the Register.

[5]    The directors and the shareholders of AIL have also been served and plaintiff’s counsel advises the orders sought are not opposed and that they intend to abide the decision of the Court.

[6]    In addition to AIL being restored to the Register, an order is sought that the company be placed into liquidation given it is unable to pay the substantial judgment obtained by PowerNet.

[7]    In my view, it is appropriate that upon AIL being restored to the Register that it be placed in liquidation. That the normal process of the filing of a statutory demand and advertising has not been followed in this case, is not material. There is no doubt that the company cannot pay the debt it owes PowerNet. The liquidation will be advertised in the ordinary way so any other creditor will receive notice of the liquidation. The proposed liquidator is experienced and known to the Court and will thoroughly investigate the company’s affairs to identify if there are other creditors.

[8]    Accordingly, there is an order  restoring  Applied  Intelligence Limited  to  the New Zealand Companies Register. Upon registration the company is to be placed

1      Re Durweston Properties Ltd (1992) 1 NZPC 945 (HC).

in liquidation. The time of the order of liquidation shall be the time that the company is restored to the Register.

[9]    Iain Andrew Nellies, insolvency practitioner of Dunedin, is appointed liquidator of the company. His fees, as set out in his affidavit of 18 October 2022, are approved.

[10]   As no order for costs in respect of the restoration of the company to the Register is sought, no order for costs is made.

Associate Judge Lester