Court stops company’s liquidation

 THE National Court in Waigani has stopped the liquidation of a company because the firm was not properly served legal papers.

The same court on Oct 7 last year issued an order  placing NC Resources Ltd into liquidation. It appointed James Kruse as the liquidator.

Justice Catherine Davani in her 34-page ruling set aside the court order last October because the statutory demand and petition were not served properly or not served at all on the company.

“It means that the statutory demand and the petition are irregular meaning there is no cause of action on foot,” Davani said. 

Davani said the statutory demand and petition were not served on the registered office of NC Resources Ltd. 

It was discovered that they were served at the wrong office – Portion 2173 at 16-Mile, outside Port Moresby. 

The company’s registered office is at Portion 749 at 18-Mile.

Monier Ltd, the petitioning creditor, initiated the court proceedings on Aug 30 last year after NC Resources Ltd failed to pay an outstanding debt of K283,561.78.

Monier Ltd said after sending a statutory demand, the debt was not paid. It asked the court’s approval to wind up NC Resources Ltd.

NC Resources Ltd director George Nicholas Constantinou said he had paid the debt to Monier Ltd on Oct 14, 2013. 

But the cheque was returned by Kruse who advised that it was a preferential payment.