Decision Reserved On Winding-up Petition

Press, Volume CIX, Issue 32031, 4 July 1969, Page 8

Decision Reserved On Winding-up Petition

The Star TV, Ltd, company should be either wound up or the petition for such adjourned until the outcome of

a pending appeal to the Privy Council against the windingup of two associated companies, Bateman TV Hire, Ltd, and Bateman Television, Ltd, submitted Mr P. T. Mahon in the Supreme Court] yesterday. In seeking, before Mr Justice Macarthur, a winding-up of Star TV, Ltd, Mr Mahon, on behalf of Belmont Finance, Ltd, said that in his client’s view the Star company was unable to pay its debts, and although Belmont Finance itself had been paid, there was authority in law that that fact did not take the petition out of the court’s jurisdiction. The court was entitled to ask for, and obtain. an accurate picture of the Star company's affairs, to see whether a winding-up. should be made. As a further ground, submitted Mr Mahon, it was just and equitable that the Star company be wound up. Opposing the winding-up, Mr C. I. Patterson (Wellington), for Star TV, made a

primary submission that the petition be dismissed on the ground that matters of fact were involved which ought to be decided by an action for recovery of moneys in the ordinary way.

After an all-day hearing, in which both parties called evidence, his Honour reserved decision.

Mr Mahon, in his submissions, said: “We say it is impossible to dissociate Star TV from the established insolvency of Bateman TV Hire and Bateman Television. Because one cannot dissociate the Star company from tbe affairs of the other companies, it is just and equitable that it be wound up.” There was doubt, said Mr Mahon, as to the ownership of television sets shown as assets of Star TV. “These directors should not be allowed to trade in opposition to the companies in liquidation, when their own accounts show that Star TV owes Bateman TV Hire $33,919,” Mr Mahon said. Mr Patterson said that the affairs of Star TV were so dependent on the position as regards stock of television sets, and the amounts said to be owing both between the Bateman companies and between the Bateman companies and the finance companies, that the proper course was for the petition to be dismissed.

This should be done, he submitted, on the footing that if the finance companies wished to pursue the matter they might bring an action to ; determine their rights.