Commissioner of Inland Revenue v Chesterfields Preschools Limited [2015] NZHC 482 (16 March 2015)

Last Updated: 19 March 2015

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