OF THE BANKRUPTCY OF ALLAN CLIFF ARMITAGE (BANKRUPT) V ESTABLISHED INVESTMENTS LIMITED (IN LIQUIDATION) HC AK CIV-2007-404-4280

OF THE BANKRUPTCY OF ALLAN CLIFF ARMITAGE (BANKRUPT) V ESTABLISHED INVESTMENTS LIMITED (IN LIQUIDATION) HC AK CIV-2007-404-4280

The Court extended the bankrupt's period of bankruptcy by three years (to 17 October 2013) and imposed conditions under s 111 for three years post‑discharge (until 17 October 2016) because the bankrupt's repeated misconduct—criminal convictions for fraud, misappropriation/irresponsible withdrawals of large sums, and the ongoing use of companies and trusts as fronts during previous and current bankruptcies—demonstrated a real risk of repeating harmful conduct; under s 109 the Court may take a broad range of past conduct into account and exercise its s 110 discretion to protect the public.

Citation
openlaw-d33c9677_8a78_4936_b384_9064ed25de8a.pdf
Parties
Judgment Debtor (bankrupt): Allan Cliff Armitage; Judgment Creditor: Established Investments Limited (in liquidation)
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 April 2011
Procedural Posture
Insolvency / Bankruptcy Objection to Automatic Discharge / Hearing and Judgment on Objection to Discharge
Outcome
Official Assignee's objection to automatic discharge granted in part; bankrupt's automatic discharge delayed and conditions imposed under s 111
Legal Topics
Objection to Automatic Discharge, Extension of Bankruptcy Period, Conditions on Discharge (s 111), Use of Companies and Trusts to Evade Bankruptcy Disabilities, Impact of Criminal Convictions on Discharge
Insolvency Bankruptcy Law Company Law Trusts Criminal Law (fraud) Objection to Automatic Discharge Extension of Bankruptcy Period Conditions on Discharge (s 111) +2 more

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Parties

Allan Cliff Armitage

Judgment Debtor (bankrupt)

Established Investments Limited (in liquidation)

Judgment Creditor

Procedural Posture

Insolvency / Bankruptcy Objection to Automatic Discharge / Hearing and Judgment on Objection to Discharge

Legal Issues

  1. 1 Whether the Official Assignee's objection to automatic discharge should be upheld
  2. 2 Appropriate duration of any extension of bankruptcy
  3. 3 Whether conditions under s 111 should be imposed after discharge

Ratio Decidendi

The Court extended the bankrupt's period of bankruptcy by three years (to 17 October 2013) and imposed conditions under s 111 for three years post‑discharge (until 17 October 2016) because the bankrupt's repeated misconduct—criminal convictions for fraud, misappropriation/irresponsible withdrawals of large sums, and the ongoing use of companies and trusts as fronts during previous and current bankruptcies—demonstrated a real risk of repeating harmful conduct; under s 109 the Court may take a broad range of past conduct into account and exercise its s 110 discretion to protect the public.

Court Disposition

Official Assignee's objection to automatic discharge granted in part; bankrupt's automatic discharge delayed and conditions imposed under s 111

Orders

  • Extend period of bankruptcy by three years until 17 October 2013
  • Make orders pursuant to Insolvency Act 1967 s 111(1)(a) to (c) imposing conditions for three years after discharge until 17 October 2016