24 June 2020

Public Works: Aztek Ltd v. Attorney-General

Land taken under the Public Works Act but now surplus to Auckland’s Waterview tunnel connection should first be offered back to the original owner, a defunct company struck off the companies register, ruled the Court of Appeal.
Government officials had plans to offer this surplus land to Auckland Maori as part of ongoing Treaty of Waitangi claim settlements. In 2005, land owned by Aztek Ltd was compulsorily acquired for proposed Waterview roading.  Tresta Prujean owned Aztek.  Her company developed residential properties in the Waterview area.  The court was told Ms Prujean moved to Australia in 2008; Aztek was struck off the companies register in 2009 for failing to file annual returns.  She later learned through her New Zealand lawyers that part of the land compulsorily purchased was surplus to requirements.  The Public Works Act requires surplus land to be first offered back to the original owner.  Land Information New Zealand said there was no original owner; Aztek no longer existed.
The Court of Appeal ruled that struck off companies remain in suspended animation; they can be restored to the companies register following application by any interested party.  Land Information should have contacted Aztek, asking if its shareholder had any interest in reviving her company and then purchasing the surplus land.  The company’s listed registered office was a firm of accountants.  Evidence was given that Aztek was restored to the register in 2015 ready to take legal action.
The Court of Appeal said Aztec’s owner should have been tracked down, despite the company being struck off at the time Waterview land became surplus.  Aztec had first right of refusal to buy at a market price yet to be assessed: the date Aztek would have been restored to the register when properly informed by Land Information of its right to buy back; a date preceding its actual 2015 restoration.
Aztek Ltd v. Attorney-General – Court of Appeal (24.06.20)
20.110