S SHANKLAND & ANOR V NUMERIA FINANCE LIMITED A DULY INCORPORATED COMPANY HAVING ITS REGISTERED OFFICE AT LEVEL 1, 237 TAMAKI DRIVE, KOHIMARAMA, AUCKLAND, FINANCIERS HC AK CIV2006-404-5919

S SHANKLAND & ANOR V NUMERIA FINANCE LIMITED A DULY INCORPORATED COMPANY HAVING ITS REGISTERED OFFICE AT LEVEL 1, 237 TAMAKI DRIVE, KOHIMARAMA, AUCKLAND, FINANCIERS HC AK CIV2006-404-5919

The judgment debt ($219,990.65) substantially exceeded the value of any remaining securities held by Numeria: the boat had been realised pre-judgment and applied to the claim, and the aggregate value of remaining possible securities (Porsche, indemnity, recourse) falls well short of the debt. Numeria satisfied the s25 threshold that the debt exceeds security by at least $200, and no other sufficient reason existed under s26 to refuse adjudication; accordingly the Court adjudged the debtors bankrupt.

Citation
openlaw-ac523036_4993_4d72_a2dc_d20757660b6a.pdf
Parties
Debtor: Sally Maria Shankland; Debtor: Kevin John Houlihan; Creditor: Numeria Finance Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
20 April 2007
Procedural Posture
Bankruptcy Petition Under the Insolvency Act 1967 / Hearing and Reserved Judgment; Adjudication Order Made
Outcome
Petitions granted; Kevin John Houlihan and Sally-Maria Shankland adjudged bankrupt
Legal Topics
Adjudication Under S26, Secured Creditor Valuation Under S25, Bankruptcy Notices, Set Off and Realisation of Security
Insolvency Bankruptcy Civil Procedure Adjudication Under S26 Secured Creditor Valuation Under S25 Bankruptcy Notices Set Off and Realisation of Security

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Parties

Sally Maria Shankland

Debtor

Kevin John Houlihan

Debtor

Numeria Finance Limited

Creditor

Procedural Posture

Bankruptcy Petition Under the Insolvency Act 1967 / Hearing and Reserved Judgment; Adjudication Order Made

Legal Issues

  1. 1 Whether the judgment debt exceeds the value of the creditor's securities by at least $200 under s25 of the Insolvency Act 1967
  2. 2 Whether, having regard to s26, the Court should exercise its discretion to adjudge the debtors bankrupt

Ratio Decidendi

The judgment debt ($219,990.65) substantially exceeded the value of any remaining securities held by Numeria: the boat had been realised pre-judgment and applied to the claim, and the aggregate value of remaining possible securities (Porsche, indemnity, recourse) falls well short of the debt. Numeria satisfied the s25 threshold that the debt exceeds security by at least $200, and no other sufficient reason existed under s26 to refuse adjudication; accordingly the Court adjudged the debtors bankrupt.

Court Disposition

Petitions granted; Kevin John Houlihan and Sally-Maria Shankland adjudged bankrupt

Orders

  • Adjudge Kevin John Houlihan bankrupt
  • Adjudge Sally-Maria Shankland bankrupt