SAVAGE GARAGE NZ LTD v PERAMUNE [2023] NZHC 3864

SAVAGE GARAGE NZ LTD v PERAMUNE [2023] NZHC 3864

There was a genuine and substantial dispute about the existence and terms of the debt that could not be resolved in statutory demand proceedings; Peramune was put on notice by Savage Garage on 16 June 2023 and nevertheless persisted with the statutory demand and opposition to the set-aside application, so increased...

Source-derived case information.

Citation
[2023] NZHC 3864
Parties
Applicant: Savage Garage NZ Limited; Respondent: Majitha Thanujaya Peramune
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 December 2023
Procedural Posture
Application to Set Aside Statutory Demand / Costs Judgment
Outcome
Increased costs awarded to Savage Garage NZ Limited
Legal Topics
Statutory Demand, Increased Costs, Abuse of Process, Substantial Dispute, High Court Rules R14.6
Civil Procedure Insolvency Law Company Law Costs Law Statutory Demand Increased Costs Abuse of Process Substantial Dispute +1 more

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Parties

Savage Garage NZ Limited

Applicant

Majitha Thanujaya Peramune

Respondent

Procedural Posture

Application to Set Aside Statutory Demand / Costs Judgment

Legal Issues

  1. 1 Whether the statutory demand was improperly issued
  2. 2 Whether a genuine and substantial dispute existed precluding use of statutory demand procedure
  3. 3 Whether the issuer of the statutory demand unreasonably failed to withdraw after being put on notice

Ratio Decidendi

There was a genuine and substantial dispute about the existence and terms of the debt that could not be resolved in statutory demand proceedings; Peramune was put on notice by Savage Garage on 16 June 2023 and nevertheless persisted with the statutory demand and opposition to the set-aside application, so increased costs were justified under r14.6 of the High Court Rules; accordingly Peramune was ordered to pay Savage Garage increased costs and disbursements of $18,182.42.

Court Disposition

Increased costs awarded to Savage Garage NZ Limited

Orders

  • Respondent Majitha Peramune to pay applicant Savage Garage NZ Limited increased costs and disbursements totalling $18,182.42.