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\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\subfontbysize\hyphcaps0\formshade\horzdoc\dghspace120\dgvspace120\dghorigin1701\dgvorigin1984\dghshow0\dgvshow3 \jcompress\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot7173297 \fet0\sectd \psz9\linex0\sectdefaultcl\sectrsid8412916\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2 \pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qr \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid8412916 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid13988747 [2000] 1 FLR 184}{ \fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid656483 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8412916 IN THE }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid745011 HIGH COURT OF FIJI \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid11665413\charrsid11665413 KI}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 M INDUSTRIES LIMITED, In Re (No. 2) \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12085166 High Court Civil Jurisdiction}{\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Gates, J \par 18 August, 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 HBF0036}{\fs24\lang2057\langfe1033\langnp2057\insrsid938077 /}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 99L \par \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 Winding up}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13988747 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 - whether}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 pet}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 itioner}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 at hearing confined to grounds set out in petition and affidavit or can rely on further evidence - whether viva voce evidence admissible in open court - Companies (Winding Up) Rules 28(1), 29, 30,}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13785062 31(1), 31(2), Companies Act ss}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid11665413 220, 221}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11665413 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 The company objecte}{\fs24\lang2057\langfe1033\langnp2057\insrsid4536436 d variously to the petition and }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 forms used in the winding up process. After issuing a ruling and hearing further argument from counsel for the supporting creditors, a second preliminary ruling was issued. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4536436 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid4536436 Held}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 - (1) It is important in a 'just and equitab le' petition that the debtor company know what allegations it has to meet but an allegation of insolvency is wide enough to encompass deeming insolvency of failing to meet s221 demand.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid7173297 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (2) For a court to consider an allegation whether directors' discretion had been exercised improperly, or paid themselves certain salaries, it should have been alleged in the petition. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (3)}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 No formal notice need be given of evidence to be adduced at hearing of petition, as pleadings occur through the petition. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (4) Any admissible evidence can be adduced as long as it is relevant to the pleadings of the creditor's petition, }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid4536436 Viva voce}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 evidence of non-payment from supporting creditors or through counsel's subm issions is admissible as evidence of insolvency. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 5}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 ) A winding up petition cannot be used as an expedited and shortened trial procedure for action for debt, but must be proved in open court, including evidence from supporting creditors. \par \par Hearing of winding up petition to proceed. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4536436 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid4536436 Cases referred to in judgment \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid13988747 Cons }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 Investment Corporation of Fiji Ltd v Offshore Oil N.L}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid4536436\charrsid12085166 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid4536436\charrsid13988747 SC 939/83 6}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid13988747 April,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 1984 \par \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid14377167 Adish K.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid14377167 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid14377167 Naray}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid14377167 an for the Petitioning Creditor}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7171185\charrsid14377167 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid14377167 Samuel}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid745011\charrsid14377167 Ram for the respondent Company}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7171185\charrsid14377167 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid14377167 Rajesh Ronald Gordon for 2 Supporting Creditors [Lautoka Engineering Ltd. and Reddy}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7171185\charrsid14377167 \rquote s T}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid14377167 yres] \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7171185 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 18 August 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7171185 SECOND PRELIMINARY RULING}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7171185 Gates, J \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8866446 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Since delivering a preliminary ruling in this matter on July 7 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid8866446 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid12085166 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8866446 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 have heard further argument by way of preliminary objection to the Winding Up proceedings. These objections fall into three categories. \par \par 1.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid8866446 Is the Petitioner at the hearing confined to the grounds set out in its petition and affidavit? \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8866446 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 On 17 December 1999 a Winding Up petition was f}{\fs24\lang2057\langfe1033\langnp2057\insrsid8866446 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 led at Co urt by the Petitioner's solicitors. It was filed with an affidavit which simply verified the Petition, but otherwise provided no further particulars of the allegations contained in the petition. A Memorandum of Due Compliance pursuant to Rule 28(1) of th} {\fs24\lang2057\langfe1033\langnp2057\insrsid656483 e Companies (Winding Up) Rules C}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 ap. 247 was also filed by the Petitioner on 19 January 2000. Notice of the hearing of the Petition on 4 February 2000 was advertised in the Fiji Times on 18 December 1999. No doubt in response to that announcement creditors ga ve notice to the Petitioner and to the Court of their intention to appear in support of the Petition. 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Lautoka Engineering Limited\cell }\pard \qc \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid8412916 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 557.20\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \trowd \irow1\irowband1\ts11\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088 \row }\trowd \irow2\irowband2\ts11\trrh540\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalb \clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid7173297 { \fs24\lang2057\langfe1033\langnp2057\insrsid8412916 2. Appal Sami Reddy T/}{\fs24\lang2057\langfe1033\langnp2057\insrsid8412916\charrsid7173297 A Reddy's Tyres \par Autosales and Service Centre\cell }\pard \qc \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid8412916 {\fs24\lang2057\langfe1033\langnp2057\insrsid8412916 17,530.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8412916\charrsid7173297 46\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid8412916\charrsid7173297 \trowd \irow2\irowband2\ts11\trrh540\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088\row }\trowd \irow3\irowband3\ts11\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 3. Carpenters Fiji Limited\cell }\pard \qc \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid8412916 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 14,588.25\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 { \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \trowd \irow3\irowband3\ts11\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088\row }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 4. Mobil Oil Fiji\cell }\pard \qc \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid8412916 { \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 15,790.02\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \trowd \irow4\irowband4\lastrow \ts11\trleft720\trftsWidth1\trftsWidthB3\trftsWidthA3\tblrsid13707358 \clvertalc\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4242\clshdrawnil \cellx4962\clvertalc\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2126\clshdrawnil \cellx7088\row }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 { \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par Further Affidavits were filed, one from the Petitioner and two from the Respondent Company. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Section 220 of the Companies Act provides for winding up by the Court in 7 instances. Two of these are relevant here: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13788916 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Section 220. A Company may}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8412916 be wound up by the Court, if -}{\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (e) the company is unable to pay its debts; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (f) the court is of opinion that it is just and equitable that the company should be wound up;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Both subsections were included and relied on in the petition [Clauses 8 and 9]. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Persons intending to appear on the hearing of a petition are required to serve on the Petitioner a Notice in compliance with Form 13 of such intention [Rule 29]. However there is no requirement to serve such notice on the Respondent debtor company. The Petitioner then compiles a list of such persons on Form 13 and files this with t he Court on }{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 the day of the hearing [Rule 30]}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . Again, there is no requirement to serve this list on the Respondent debtor Company. The Respondent comes into possession of particulars of unpaid debts through the Court. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 In this petition the petitioner urges on the court two grounds for seeking a Winding Up order: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13788916 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 8. Tha}{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 t the Company is insolvent and /}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 or unable to pay its debts \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid745011 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13788916 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 9. That in the circumstances it is just and equitable that the Company should be wound up. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par In }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 Re Fildes Bros. Ltd.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13788916 [1970] 1 All ER 923 Megarr}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 y J. at 926d said: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14745923 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 the words 'just and equitable' are very wide in their scope, and I cannot say that they are incapable of embracing a case where the director is far more active in the c}{\fs24\lang2057\langfe1033\langnp2057\insrsid2371484 ompany's affairs than the other.} {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 This case was about two brothers running two related companies, which fell on hard times. The brother who brought the petition did so under three heads of complaint. First it was said a new bank account was opened without}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14745923 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 consultation in the other brother's name only, secondly there had been a refusal to employ the petitioning brother in the retail business following his loss of employment upon closure of the wholesale business, and thirdly there were fears that the brother remaining would run the company for his own b enefit. Under }{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 just and equitable}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 these were the heads of complaint set out in the petition. Megarry J. said (at 927f): \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 ... but I do not think that he can rely on any new on any new head not fairly covered by his petition.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par In }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 Re Cuthbert Cooper and Sons Ltd}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid14745923\charrsid12085166 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 [1937] }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 1 Ch. 392 the founding father of a business had died leaving five sons his shares in the company. Two sons as sole directors amongst other things refused to register the transfers of the shares to the three younger s ons. Many allegations were brought up as to why}{\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 the court should make a Winding Up order upon the ground that it was }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 just and equitable}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 to do so. At 399 Simonds J. said: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14745923 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 For the purpose of determining whether the petition should be granted or not, it is necessary for me to look at the allegations in the petition, and I do not propose to travel beyond them.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Although there was an allegation that the debtors had consistently declined to register the petitioners as members, the petition it would appear, h ad not gone on to allege that the directors discretion has been exercised improperly. For}{\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 this impropriety to have been considered by the court, it should have been alleged in the petition. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Similarly on the allegation that the directors had paid themselves certain salaries, Simonds J. (at 400) said: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14745923 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 but there is not the allegation, much less the proof, that the certain salaries which were paid, and in addition the bonuses, were excessive, or were paid in ill faith.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 and further (at 401): \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14745923 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14745923 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 It appeared t o me to be plain as the matter went on that it must be confined to the allegations in the petition, and therefore I did not allow Mr Harman to go outside it and cross examine the witnesses on matters which were not of substantive allegations in the }{ \fs24\lang2057\langfe1033\langnp2057\insrsid5658883 petition. Accordingly it rests on}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 the allegations in the petition, and such evidence as I have heard.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par In }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 Re Lundie Bros Ltd}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5658883\charrsid12085166 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 [1965]}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 2 All ER 692 where the petitioner }{\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 also alleged that it would be j}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 ust and equitable to wind up the company, Plowman J. at 699 said: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5658883 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Parenthetically, there is here a point which I think that I should mention. It was suggested in the course of argument that it was really the evidence and not the allegations in the petition which was of importance in this matter. I entirely dissent fr om the proposition. It seems to me that it would be wrong for the court to travel outside the allegations in the petition, particularly in a case of this sort where the petition is based on the proposition that the respondents to it have been guilty of so me oppression or some lack of probity.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 In expressing ap}{\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 proval for this approach in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid5658883\charrsid745011 Re F}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid745011 ildes Bros. Ltd}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid745011 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (supra) Megarry J. went on to say at 928b: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid5658883 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5658883 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 in cases in which ther}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5658883 e are no normal pleadings, it seem}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 s to me important those who oppose a winding up should know, in time to prepare their case, what are the allegations that they have to meet. In after a petition has been presented the petitioner wishes to broaden his attack, let him first amend his petiti on.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par It is said for the Respondent Debtor Company that the petition only pleads non-compliance with a statutory demand. It does not plead insolvency based on the debts of the supporting creditors. Section 220 provides for only one circumstances concerning debt as a ground for winding up. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid875905 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 That is contained in section 220(e), namely that }{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 the company is unable to pay its debts.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Because the petition pleads the f}{\fs24\lang2057\langfe1033\langnp2057\insrsid875905 acts of the omission to attend}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 to the statutory demand and does not plead the facts of individual debts, details of which were subsequently filed at court, it does not mean that the petitioner is precluded from relying on such evidence in support of the allegation on insolvency or inability to pay debts. Bare statements of the individual debts are pro vided in the Notices of Intention to appear in support. \par \par I conclude that the petitioner is confined to the allegations set out in its petition, and that the facts as pleaded in the petition are wide enough to include general insolvency as well as the deemin g insolvency of failing to meet the section 221 demand. The head of complaint here is }{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 insolvency}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . In a petition based on }{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 just an equitable}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 considerations it is necessary for the Respondent to know more, namely, on which battlefield he must resist the petition. He needs to know the heads of complaint, as afflicted the brothers in the }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid8210158 In re Fildes Brothers case}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid2886791 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (supra), for such heads can be of infinite variety. In contrast preparation for meeting an allegation of insolvency it's Directors and accountants . They will know which debt remains outstanding and which is disputed. I find the petition as pleased adequate to put the respondent on sufficient notice as to what it has to meet in court. \par \par 2.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 What formal notice has to be given of evidence to be ad}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid875905 duced a t the winding up hearing}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 ? \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid875905 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 The simple answer to this question is 'none'. Notice of pleadings occurs through the petition. \par \par The petition is verified by affidavit. Affidavits in opposition to a petition are to be filed within 7 days of the date on which the affidavit verifying the petition is filed [Rule 31(1)]. An affidavit in reply can then be filed within three days thereafter [Rule 31(2)]. To this extent the Respondent gains more particulars of the petition and adequate notice of evidence relied on by th e petitioner. In some instances inspection and discovery can be ordered as happened in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 Bateman Television Limited & Anor. v Coleridge Finance Co. Ltd}{ \fs24\lang2057\langfe1033\langnp2057\insrsid875905 . [}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 1969] NZLR 794. \par \par In }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 Adams & Co. v. Lyceum Theatres Ltd}{\fs24\lang2057\langfe1033\langnp2057\insrsid875905 . [1992]}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 W.L.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5009542 D}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . 176 (South Africa) it was held in a petition which relied on failure to pay a statutory demand as well as inability to pay debts, that it was not necessary to set out the grounds of the company's inability to pay its debts. \par \par 3.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 Is viva voce evidence admissible from the su}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid875905 pp}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 ortin}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid875905 g}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 creditors at the hearin}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid875905 g}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid875905 of the petition? \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid875905 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 At the hearing of the petition any admissible evidence can be adduced so long as it is relevant to the pleadings of the petition. The hearing is the hearing of}{ \fs24\lang2057\langfe1033\langnp2057\insrsid875905 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 the allegations contained in the petitioner's petition. It is n ot a hearing of the Supporting Creditor's petition. But evidence of non-payment of other debts such as those due to the Supporting Creditors as they became due, is admissible as evidence of insolvency on the present petitioner's petition. Creditors in sup p ort can through their counsel address the make a Winding Up order. Additionally creditors may be called themselves by the petitioner as witnesses or they may call viva voce evidence themselves in support. It may be that, apart from the statutory demand, t here was not at the time of the presentation of the petition, an inability on the part of the Respondent to pay its debts. However it is open to a court to consider other evidence subsequent to such presentation see }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Syd. Mannix}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid13988747 }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Pty. Ltd. v. Leserv Construct ions Pty. Ltd.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 [1971] 1 NSWLR 788: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid525383 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 it seems to me that the failure to meet the demand during this period was part of a continued history of failure, all of which added up to evidence of an inability to pay}{\fs24\lang2057\langfe1033\langnp2057\insrsid8210158 debts}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8210158 (per Jacobs J.A. at 791}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 c). \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Although winding up proceedings often proceed on affidavit evidence alone, viva voce evidence is admissible. Prior }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 to its revocation in 1997 [LN21/}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 97] Rule 5(1)(a) provided that the hear}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 ing of the petition was to be }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 a }{\fs24\lang2057\langfe1033\langnp2057\insrsid8210158 provided that the hearing of the petition was to be a }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 proceeding in open court. Now the proceeding would only move into open court if there were to be viva voce evidence taken. Where the issue is whether or not the debt is disputed on substantial grounds (}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Stonegate Securities Ltd. v. Gregory}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 [1980] }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 1 All E R 241) witnesses may}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 need be examined and cross examined. The court chose to receive extensive viva voc}{ \fs24\lang2057\langfe1033\langnp2057\insrsid525383 e evidence in the }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid525383\charrsid12085166 Bateman and F}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 ildes Bros}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12085166 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 case (supra). After all, the affidavit verifying as eviden}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 ce has limited status. Lindley J}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 In Re Gold Mines}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (1883) 23 Ch. 210 at 214 said: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid525383 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 The petition is presented by a person who alleges that he is creditor of the Company, and in support of the petition there is the ordinary statutory affidavit, the object of}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 prescribing which is to prevent the abuse of}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 putting upon the file long affidavits in support of the petition which may turn out to be unnecessary. The statutory affidavit strictly is no proof of anything. It is hearsay as to almost everything alleged in it, but it is sufficient to requi re an answer.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 He went on to criticise the quality of evidence in support and said (at 215): \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid745011 {\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid525383 {\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 There is no evidence of insolvency but the statutory affidavit.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7173297 {\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Under Rule 25 there is no requirement for the affidavit verifying to be served on the Respondent, only that it shall be sworn and filed (see }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 In Re M.B.}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid13988747 }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Coogan Ltd.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 [1953] NZLR 582 at 584). Although regarded as prima facie}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 evidence of the facts of the petition the affidavit }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 verifying has been referred to}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid5009542 a }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 amounting to }{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 nothing}{\fs24\lang2057\langfe1033\langnp2057\insrsid13707358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Re Western Benefit Building Society}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (1864) 33 Beav. 368; 55 ER 409. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 Once it is clear the winding up petition is opposed, it is for the petitioner to marshal}{\fs24\lang2057\langfe1033\langnp2057\insrsid5009542 l}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 its evidence for the open court hearing. If the Respondent claims the debt is disputed on substantial grounds, the petitioner will have to satisfy the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid525383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 court that there is no bona fide dispute in law of that order. In effect the court can only act on what is proved before it (}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid745011 Fildes Bros}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 ). If it does not, the petition proceedings cannot be used as an expedited and shortened trial pro}{ \fs24\lang2057\langfe1033\langnp2057\insrsid525383 cedure for an action for debt. (}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Investment Corporation of Fiji Ltd. v. Offshore Oil N.L. }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 (unreported)}{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 Supreme Court Civil Action 939/83 6}{\fs18\lang2057\langfe1033\super\langnp2057\insrsid525383\charrsid5009542 th}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 April 1984 at 10. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid656483 In }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Re Lympne Investments Ltd}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 . (1972) 1 WLR 523 at 527D, the affidavits and exhibits were substantial, and the facts complex. Additionally there were allegations of fraud. All of these factors made proceeding by way of petition unsuitable. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 I rule that viva voce evidence is admissible at the hearing of the petition, including that from the supporting creditors. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid525383 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid525383 Preliminary objections to winding up dismissed}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid7173297 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid7173297 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12851910\charrsid7173297 \par }\pard \qr \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13707358 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid7173297\charrsid12851910 Marie Chan \par }}