TARARUA DISTRICT COUNCIL V JR REID HC PMN CIV-2009-454-622

TARARUA DISTRICT COUNCIL V JR REID HC PMN CIV-2009-454-622

The Court found an act of bankruptcy had been committed and the s13 requirements were satisfied; payments into court did not establish solvency because the debtor provided no verified financial disclosure and other creditors' unpaid costs exceeded funds held; exercising its discretion under s37, the Court declined to refuse adjudication outright but instead ordered a limited stay to allow the debtor short time to satisfy debts and directed payment of $9,105.36 to the judgment creditor from funds held in court, reserving further action if debts remain unpaid.

Citation
openlaw-80f8ed0c_088f_4970_a873_9077775ed0d8.pdf
Parties
Judgment Debtor: James Robert Reid; Judgment Creditor: Tararua District Council
Court
High Court
Jurisdiction
New Zealand
Judgment Date
15 October 2010
Procedural Posture
Bankruptcy Application Under Insolvency Act 2006 / Decision on Bankruptcy Adjudication Application
Outcome
Proceeding stayed until 15 November 2010 on terms to enable the debtor to satisfy debts; partial payment to judgment creditor ordered from funds held in court; matter to be called 2 December 2010.
Legal Topics
Adjudication, Bankruptcy Notice, Stay of Proceedings, Act of Bankruptcy, Section 37 Discretion, Payment Into Court
Insolvency Law Bankruptcy Civil Procedure Adjudication Bankruptcy Notice Stay of Proceedings Act of Bankruptcy Section 37 Discretion +1 more

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Parties

James Robert Reid

Judgment Debtor

Tararua District Council

Judgment Creditor

Procedural Posture

Bankruptcy Application Under Insolvency Act 2006 / Decision on Bankruptcy Adjudication Application

Legal Issues

  1. 1 Whether an act of bankruptcy was committed
  2. 2 Whether requirements of s13 Insolvency Act 2006 were satisfied
  3. 3 Whether court should refuse adjudication under s37(b),(c),(d)

Ratio Decidendi

The Court found an act of bankruptcy had been committed and the s13 requirements were satisfied; payments into court did not establish solvency because the debtor provided no verified financial disclosure and other creditors' unpaid costs exceeded funds held; exercising its discretion under s37, the Court declined to refuse adjudication outright but instead ordered a limited stay to allow the debtor short time to satisfy debts and directed payment of $9,105.36 to the judgment creditor from funds held in court, reserving further action if debts remain unpaid.

Court Disposition

Proceeding stayed until 15 November 2010 on terms to enable the debtor to satisfy debts; partial payment to judgment creditor ordered from funds held in court; matter to be called 2 December 2010.

Orders

  • Proceeding stayed until 15 November 2010 to enable the judgment debtor to satisfy all debts owing to the judgment creditor.
  • Registrar to pay to the judgment creditor the sum of $9,105.36 together with interest earned thereon from funds held by the Court in the name of the judgment debtor in satisfaction of the debt which is the subject of the application.