In the depth of Auckland’s covid-19 lockdowns, Oniel Handa purchased two Auckland hospitality venues for $1.17 million in the name of his company Blossom Tradings Ltd. When he set in train legal action claiming one million dollars damages alleging the businesses were worth only $136,000 at time of purchase, vendor shareholders countered by demanding access to Blossom’s accounting records alleging poor financial performance since the 2021 purchase of Bar 29 and Elsie’s Bar & Restaurant was caused by Blossom’s mismanagement.
Blossom was ordered to hand over copies of monthly sales records and expenses (including wage records and timesheets) plus GST and tax returns for trading periods since Blossom’s purchase.
The High Court was told Blossom Tradings alleges past profitability of the venues was misrepresented at time of sale. It alleges sales were inflated and wage expenses under-reported.
The vendor was SRP Holdings 2015 Ltd, controlled by Sunil Nair and Sonia Sethi according to Companies Office records. They deny any misrepresentation.
Blossom claims it overpaid. It plans to set off any damages award against the $600,000 still due on vendor finance used to finance its purchase.
Associate judge Gardiner ruled Blossom Tradings had ten days to make available the required post-purchase accounting information.
Blossom signalled that some of this information may have been ‘lost or destroyed.’ Blossom had to explain when and how these documents came to be lost, Judge Gardiner ruled.
Blossom Tradings Ltd v. Nair – High Court (14.05.24)
24.121