Allied Concrete Limited v Jeffrey Philip Meltzer and Lloyd James Hayward as liquidators of Window Holdings Limited (in liquidation) - SC 51/2013

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Summary

Companies Act 1993, s 296 – Whether the High Court erred in finding that the giving of value in terms of s 296(3)(c) of the Companies Act 1993 does not include value given at the time the antecedent debt is created – Whether the giving of time to pay was “giving value” for the purposes of the Act – Whether release or discharge of a liability for prior indebtedness is “value” for the purpose of s 296(3)(c). [2013] NZHC 977   Civ 2012 404 3170

Result

Leave to appeal is granted.

The approved question is whether the Associate Judge and Court of Appeal (as the case may be) was correct to conclude that the payments made to Allied Concrete Ltd, Hiway Stabilizers New Zealand Ltd and Fences and Kerbs Ltd should be set-aside and that judgment should be entered against them accordingly.
24 October 2013
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A     The appeals are allowed.  
B    The applications of the liquidators for the transactions to be voided are dismissed.
C    The respondents in each appeal must pay costs of $10,000 to the appellant in the relevant appeal, plus the appellant’s reasonable disbursements.  
D     Absent agreement between the parties, costs in the High Court and Court of Appeal are to be fixed by those Courts in light of this judgment.
18 February 2015

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