WILLIAMS V SIMPSON HC HAM CIV 2010-419-1174

WILLIAMS V SIMPSON HC HAM CIV 2010-419-1174

Although the English bankruptcy was not recognised as a foreign main or non-main proceeding, the Court exercised its s 8 assistance jurisdiction to declare that seized property and voluntarily surrendered bullion were Simpson's property vested in the English trustee, authorised the Official Assignee to secure, convert and (except for currency) sell those assets, to exercise specified examination and production powers subject to safeguards for third parties, and to appoint an examiner to facilitate resolution and distribution.

Citation
openlaw-08872cb7_228d_4330_8181_dd584350b49d.pdf
Parties
Applicant (trustee in Bankruptcy, England): Steven John Williams; Debtor: Alan Geraint Simpson; Trustee/claimant (b V Adams No 2 Trust Issues): Mr Clough; Claimant (beneficial Ownership Disputed): Ms Mann; Creditor/respondent: Commissioner of Inland Revenue; Court Agent/receiver of Seized Property: Official Assignee
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 November 2010
Procedural Posture
Recognition of Foreign Bankruptcy and Ancillary Interlocutory Relief Under the Insolvency (cross Border) Act 2006 / Interlocutory Hearing to Consider Official Assignee's Report and Make Further Orders (5 November 2010)
Outcome
Partial refusal to recognise the English bankruptcy for recognition purposes but extensive ancillary relief granted under s 8 to assist the English trustee, including declaration of vesting and broad powers to the Official Assignee with specified limits.
Legal Topics
Recognition of Foreign Proceedings, Vesting of Assets in Foreign Trustee, Search Warrants and Seizure, Examination and Disclosure Powers, Appointment of Examiner, Sale and Preservation of Assets, Beneficial Ownership Disputes, Transnational Co Operation and Letters of Request
Insolvency Law Cross Border Insolvency Trusts and Proprietary Claims Civil Procedure Property Law Recognition of Foreign Proceedings Vesting of Assets in Foreign Trustee Search Warrants and Seizure +5 more

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Parties

Steven John Williams

Applicant (trustee in Bankruptcy, England)

Alan Geraint Simpson

Debtor

Mr Clough

Trustee/claimant (b V Adams No 2 Trust Issues)

Ms Mann

Claimant (beneficial Ownership Disputed)

Commissioner of Inland Revenue

Creditor/respondent

Official Assignee

Court Agent/receiver of Seized Property

Procedural Posture

Recognition of Foreign Bankruptcy and Ancillary Interlocutory Relief Under the Insolvency (cross Border) Act 2006 / Interlocutory Hearing to Consider Official Assignee's Report and Make Further Orders (5 November 2010)

Legal Issues

  1. 1 Whether the English bankruptcy is recognisable as a foreign main or non-main proceeding under the Insolvency (Cross-border) Act 2006
  2. 2 Whether seized bullion and other items are property of Mr Simpson and vested in the English trustee
  3. 3 Extent of ancillary assistance the NZ Court may grant under s 8 of the Insolvency (Cross-border) Act 2006

Ratio Decidendi

Although the English bankruptcy was not recognised as a foreign main or non-main proceeding, the Court exercised its s 8 assistance jurisdiction to declare that seized property and voluntarily surrendered bullion were Simpson's property vested in the English trustee, authorised the Official Assignee to secure, convert and (except for currency) sell those assets, to exercise specified examination and production powers subject to safeguards for third parties, and to appoint an examiner to facilitate resolution and distribution.

Court Disposition

Partial refusal to recognise the English bankruptcy for recognition purposes but extensive ancillary relief granted under s 8 to assist the English trustee, including declaration of vesting and broad powers to the Official Assignee with specified limits.

Orders

  • Declaration that all property seized at 35 Ann Street (20 and 29 September 2010) and bullion voluntarily surrendered is property of Mr Simpson and has vested in Mr Williams as trustee in bankruptcy in England
  • Official Assignee authorised to sell that property (except currency) and hold net proceeds in a trust account pending further order