Two
directors of the Masala restaurant chain have been fined for contempt of court
after failing to promptly deliver up company documents to Masala’s liquidators.
Masala restaurants in Auckland gained
notoriety after prosecutions for underpaying immigrant staff. The Masala group had been under investigation
by Inland Revenue and the Ministry of Business since 2013. In December 2014, four Masala companies were
put into liquidation with Waterstone Insolvency appointed liquidators. Having trouble getting hold of company
documents, Waterstone got High Court orders against the companies’ directors in
July 2015 to force compliance.
The High Court was told Rajwinder Singh
Grewal took six months to tell liquidators there were 97 boxes to be picked up
from his Royal Oak home. He said that
was all he had. After being called by
the liquidators for a formal Companies Act examination, Mr Grewal handed over
another 50 boxes. Only after further
questioning in two formal examinations did Mr Grewal disclose the password necessary
to access his email account. Justice
Heath ruled Mr Grewal was in contempt of court in his belated compliance with orders
to deliver up company documents. Mr
Grewal was fined $10,000; half to go to the liquidators, the balance to the
Crown. Joti Jain was fined $5000 for
contempt, again split between the liquidators and the Crown. Justice Heath said she failed to properly
disclose email accounts holding company information. The two directors were jointly ordered to pay
liquidators costs of $20,000 incurred in bringing contempt of court applications.
Grant
v. Grewal – High Court (11.07.16)
16.108