NEIL ANTHONY SHEEHAN V THE COMMISSIONER OF INLAND REVENUE HC DUN CIV 2009 412 608

NEIL ANTHONY SHEEHAN V THE COMMISSIONER OF INLAND REVENUE HC DUN CIV 2009 412 608

The s13 statutory requirements were satisfied and the Court concluded that neither s37(c) nor s37(d) provided sufficient grounds to refuse adjudication; delay to attempt a sale as a going concern does not outweigh the creditor's right to adjudication, the public interest in tax enforcement, and the need for investigation and creditor protection, therefore adjudication is ordered.

Citation
openlaw-a25860df_3c24_49c4_a7a5_fcf52c9c037c.pdf
Parties
Judgment Debtor: Neil Anthony Sheehan; Judgment Creditor: Commissioner of Inland Revenue
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 May 2010
Procedural Posture
Bankruptcy Adjudication Under Insolvency Act 2006 / Judgment (adjudication)
Outcome
Judgment debtor adjudicated bankrupt
Legal Topics
Adjudication Under S13/s36, Discretion to Refuse Adjudication S37(c) and S37(d), Maximising Creditor Recovery, Adjournment/stay, Trust Asset Investigation
Insolvency Bankruptcy Tax Law Civil Procedure Adjudication Under S13/s36 Discretion to Refuse Adjudication S37(c) and S37(d) Maximising Creditor Recovery Adjournment/stay +1 more

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Parties

Neil Anthony Sheehan

Judgment Debtor

Commissioner of Inland Revenue

Judgment Creditor

Procedural Posture

Bankruptcy Adjudication Under Insolvency Act 2006 / Judgment (adjudication)

Legal Issues

  1. 1 Whether s13 requirements for adjudication are established
  2. 2 Whether the Court should exercise its discretion under s37(c) (just and equitable) to refuse adjudication
  3. 3 Whether s37(d) residual discretion or further delay is justified to maximise creditor recovery by sale of company as going concern

Ratio Decidendi

The s13 statutory requirements were satisfied and the Court concluded that neither s37(c) nor s37(d) provided sufficient grounds to refuse adjudication; delay to attempt a sale as a going concern does not outweigh the creditor's right to adjudication, the public interest in tax enforcement, and the need for investigation and creditor protection, therefore adjudication is ordered.

Court Disposition

Judgment debtor adjudicated bankrupt

Orders

  • The judgment debtor be adjudicated bankrupt
  • Judgment debtor to pay costs of and incidental to this proceeding on a 2B basis together with disbursements to be fixed by the Registrar