Supreme Court grants leave to appeal in Jennings case concerning insolvency priorities

Friday 14 February 2014

The Supreme Court today granted leave to appeal in the Jennings case. The Supreme Court will review whether the Court of Appeal was correct to find that the Commissioner of Inland Revenue has a trust over a company's bank account, giving it a super-priority over other preferential creditors and secured creditors when the company goes into liquidation.

In our view, there are good grounds for the Supreme Court to adopt a more limited interpretation of the legislation than that adopted by the Court of Appeal. To read our article in this month's New Zealand Law Journal explaining why a more limited approach should be adopted, click here‚Äč.


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  • David Friar

    Partner Auckland
Related areas of expertise
  • Restructuring and insolvency