TOMAS EARL CONDON V SOUTHLAND BUILDING SOCIETY HC AK CIV 2009-463-306

TOMAS EARL CONDON V SOUTHLAND BUILDING SOCIETY HC AK CIV 2009-463-306

The secured creditor's entire judgment debt must be taken into account when calculating votes on a creditor's proposal; because that debt was counted the proposal failed to obtain the necessary majority and the creditor's petition for adjudication was granted.

Citation
openlaw-05456e9f_b70e_48c9_9eaa_79ebda08378a.pdf
Parties
Judgment Debtor: Tomas Earl Condon; Judgment Creditor: Southland Building Society
Court
High Court
Jurisdiction
New Zealand
Judgment Date
23 November 2009
Procedural Posture
Insolvency Adjudication in Bankruptcy (insolvency Act 2006) / Judgment
Outcome
Petition granted; creditor's proposal failed; debtor adjudicated bankrupt.
Legal Topics
Creditor's Proposal, Secured Creditor Voting, Adjudication in Bankruptcy, Insolvency Act 2006 S95, Voting on Proposals
Insolvency Bankruptcy Civil Procedure Secured Transactions Creditor's Proposal Secured Creditor Voting Adjudication in Bankruptcy Insolvency Act 2006 S95 +1 more

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Parties

Tomas Earl Condon

Judgment Debtor

Southland Building Society

Judgment Creditor

Procedural Posture

Insolvency Adjudication in Bankruptcy (insolvency Act 2006) / Judgment

Legal Issues

  1. 1 Whether a secured creditor's debt can be excluded or reduced when calculating votes on a creditor's proposal
  2. 2 Whether the petition for adjudication in bankruptcy should be granted given the failure of the creditor's proposal

Ratio Decidendi

The secured creditor's entire judgment debt must be taken into account when calculating votes on a creditor's proposal; because that debt was counted the proposal failed to obtain the necessary majority and the creditor's petition for adjudication was granted.

Court Disposition

Petition granted; creditor's proposal failed; debtor adjudicated bankrupt.

Orders

  • Order for adjudication made at 3:40pm on 23 November 2009.
  • Costs awarded to Southland Building Society on a 2B basis together with disbursements to be fixed by the Registrar.