Commissioner of Inland Revenue v Bhanabhai - [2006] 1 NZLR 797

Law practitioners — Solicitor’s undertaking — Solicitor gave Commissioner of Inland Revenue undertaking to pay GST from proceeds of settlements — When conveyances settled GST not paid — Whether elements of undertaking met — Whether Court should exercise inherent jurisdiction to enforce undertaking — Whether compensatory orders should be made for breach of undertaking — Punitive and disciplinary nature of Court’s jurisdiction.

Practice and procedure — Res judicata — Issue estoppel — Whether party prevented from pursuing undertaking by virtue of same debt being claimed in liquidation.

Insurance — Exclusion clauses — Whether compensation ordered by the Court for breach of undertaking excluded — Whether loss arose from liability incurred by business managed or carried on by insured — Whether breach of undertaking dishonest.