PRASAD v MAHARAJ [2019] NZHC 1914

PRASAD v MAHARAJ [2019] NZHC 1914

The court dismissed the second proposal under s333 because the applicant failed to discharge the burden of showing a material change or provide reliable, cogent evidence as to how the proposal would be funded and sustained; public interest concerns arising from the insolvent's history of trading while insolvent and...

Source-derived case information.

Citation
[2019] NZHC 1914
Parties
Judgment Creditor: Rajveen Prasad; Judgment Debtor / Insolvent: Ashok Maharaj; Trustee: Roshni Chauhan; Proposed Funder / Related Entity: Keyline Homes & Projects Ltd; Creditor: Westminster Finance Limited; Creditor: Dysart Timbers Limited; Creditor: Fieldmanukau Holdings Limited (trading as MITRE 10 MEGAMANUKAU); Creditor: Kennards Hire New Zealand Limited; Creditor: Nick Nandkishore; Creditor: Robert John Warburton; Creditor: Ronald Ravindra Prasad; Creditor: Wastemanagement NZ Limited; Creditor: Warburton Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 August 2019
Procedural Posture
Insolvency / Bankruptcy / Application for Approval of Second Proposal Under S333 and Adjournment of Adjudication for Bankruptcy Under S13; Judgment Delivered
Outcome
Application for approval of the second proposal dismissed under s333 of the Insolvency Act 2006; bankruptcy adjudication proceedings adjourned to allow future determination.
Legal Topics
Proposal Approval S333, Adjudication of Bankruptcy S13, Trading While Insolvent, Creditors' Meeting and Voting, Public Interest in Insolvency
Insolvency Bankruptcy Commercial Law Proposal Approval S333 Adjudication of Bankruptcy S13 Trading While Insolvent Creditors' Meeting and Voting Public Interest in Insolvency

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Parties

Rajveen Prasad

Judgment Creditor

Ashok Maharaj

Judgment Debtor / Insolvent

Roshni Chauhan

Trustee

Keyline Homes & Projects Ltd

Proposed Funder / Related Entity

Westminster Finance Limited

Creditor

Dysart Timbers Limited

Creditor

Fieldmanukau Holdings Limited (trading as MITRE 10 MEGAMANUKAU)

Creditor

Kennards Hire New Zealand Limited

Creditor

Nick Nandkishore

Creditor

Robert John Warburton

Creditor

Ronald Ravindra Prasad

Creditor

Wastemanagement NZ Limited

Creditor

Warburton Limited

Creditor

Procedural Posture

Insolvency / Bankruptcy / Application for Approval of Second Proposal Under S333 and Adjournment of Adjudication for Bankruptcy Under S13; Judgment Delivered

Legal Issues

  1. 1 Whether the second proposal met statutory requirements under ss327–332 and should be approved under s333
  2. 2 Whether there was a material change of circumstances or sufficient new evidence to warrant overturning the prior rejection
  3. 3 Whether the proposed funding was adequately evidenced and the insolvent would meet ongoing payment obligations

Ratio Decidendi

The court dismissed the second proposal under s333 because the applicant failed to discharge the burden of showing a material change or provide reliable, cogent evidence as to how the proposal would be funded and sustained; public interest concerns arising from the insolvent's history of trading while insolvent and inadequate proof of commercial reliability made approval inexpedient.

Court Disposition

Application for approval of the second proposal dismissed under s333 of the Insolvency Act 2006; bankruptcy adjudication proceedings adjourned to allow future determination.

Orders

  • Application for approval of the proposal dismissed pursuant to s333 of the Insolvency Act 2006
  • No order as to costs (no opposing party)