ASTERON TRUST SERVICES LIMITED v MORONEY [2013] NZHC 1460

ASTERON TRUST SERVICES LIMITED v MORONEY [2013] NZHC 1460

The Court found the jurisdictional requirements under ss 13 and 36 were satisfied, s 14 did not prevent adjudication because the securities were over third‑party company property not owned by the guarantor/debtor, evidence established that realisable securities would not satisfy the judgment debt, and no credible settlement existed; discretionary factors under s 37 therefore did not justify refusing adjudication, and the debtor was adjudicated bankrupt.

Citation
[2013] NZHC 1460
Parties
Judgment Creditor: Asteron Trust Services Limited; Judgment Debtor: John Anthony Gerard Moroney
Court
High Court
Jurisdiction
New Zealand
Judgment Date
17 June 2013
Procedural Posture
Bankruptcy Adjudication / Application to Adjudicate Bankrupt — Hearing and Judgment
Outcome
John Anthony Gerard Moroney adjudicated bankrupt (order made 17 June 2013)
Legal Topics
Adjudication, Bankruptcy Notice, Valuation of Security, Discretion to Refuse Adjudication (s37), Secured Creditor Limits (s14), Guarantee and Indemnity, Receivership, Costs
Insolvency Bankruptcy Secured Transactions Civil Procedure Adjudication Bankruptcy Notice Valuation of Security Discretion to Refuse Adjudication (s37) +4 more

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Parties

Asteron Trust Services Limited

Judgment Creditor

John Anthony Gerard Moroney

Judgment Debtor

Procedural Posture

Bankruptcy Adjudication / Application to Adjudicate Bankrupt — Hearing and Judgment

Legal Issues

  1. 1 Whether jurisdictional requirements under Insolvency Act 2006 ss 13, 14 and 36 were established
  2. 2 Whether s 14 prevents adjudication where securities are over property not owned by the judgment debtor
  3. 3 Whether the court should exercise its discretion under s 37 to refuse adjudication given ongoing negotiations and the value of secured properties

Ratio Decidendi

The Court found the jurisdictional requirements under ss 13 and 36 were satisfied, s 14 did not prevent adjudication because the securities were over third‑party company property not owned by the guarantor/debtor, evidence established that realisable securities would not satisfy the judgment debt, and no credible settlement existed; discretionary factors under s 37 therefore did not justify refusing adjudication, and the debtor was adjudicated bankrupt.

Court Disposition

John Anthony Gerard Moroney adjudicated bankrupt (order made 17 June 2013)

Orders

  • Order adjudicating John Anthony Gerard Moroney bankrupt
  • Judgment creditor awarded costs on Category 2 Band B together with disbursements as fixed by the Registrar