Jellie v Tannenberg Limited concerned an application by the defendant, Tannenberg, to stay liquidation proceedings against it. Tannenberg claimed not to have been served with a copy of the statutory demand or liquidation proceedings. Instead, Tannenberg alleged that it first heard of the liquidation proceedings when they were advertised in the New Zealand Herald. In addition to the issue in respect of service, Tannenberg disputed the underlying debt on which the statutory demand was based.
Fitzgerald J considered that it was within the Court's jurisdiction to stay the proceedings permanently and that it was appropriate for the Court to do so in the circumstances. Her Honour considered that it would be "unfair", given the service issues and the substantial and genuine dispute as to the underlying debt, for the issue regarding the debt to be "resolved with the spectre of liquidation proceedings hanging over the company."
See Court decision here.