Allied Farmers has applied for a summary judgement against the Fenton Project for $600,000.
The hearing on the dispute took place in the High Court at Auckland yesterday with Associate Judge Jeremy Doogue reserving his decision on whether Fenton will have to pay up.
Allied Farmers acquired failed finance firm Hanover's loans in December 2009.
Fenton entered into a project with a Hanover-related entity, owned by former Hanover Finance director Mark Hotchin, to develop Newmarket's Lion Breweries site into apartments and retail outlets.
Anthony John Gapes of Orakei is listed as the sole owner and director of Fenton.
Last week, Hanover Finance claimed Allied Farmers, which took on much of its business when it collapsed, had lost shareholders' money because of alleged mismanagement. Judge Doogue's judgement is expected in the next two weeks.