SCOTT V UDC FINANCE LIMITED HC AK CIV 2010-404-2605

SCOTT V UDC FINANCE LIMITED HC AK CIV 2010-404-2605

The proposal was not approved because Westpac's proof of debt limited to the Aranui Trust meant it could not properly be treated as supporting the proposal, so the statutory majority under s331(3) was not achieved and the court therefore would not and could not approve the proposal under s333(3). The adjudication of Julie Maree Scott as bankrupt was ordered because the debt remained unpaid and no ground existed to refuse adjudication.

Citation
openlaw-f0147746_3c35_43b6_ac7e_be647aca6aed.pdf
Parties
Judgment Creditor / Insolvent: Julie Maree Scott; Judgment Debtor: UDC Finance Limited; Creditor: Westpac Banking Corporation
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 July 2011
Procedural Posture
Proposal Approval Under Insolvency Act 2006 and Adjudication Petition / Hearing (oral Judgment)
Outcome
Proposal not approved; adjudication ordered
Legal Topics
Proposal Approval, Creditors' Meeting Voting, Adjudication, Proof of Debt, Costs
Insolvency Bankruptcy Civil Procedure Proposal Approval Creditors' Meeting Voting Adjudication Proof of Debt Costs

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Parties

Julie Maree Scott

Judgment Creditor / Insolvent

UDC Finance Limited

Judgment Debtor

Westpac Banking Corporation

Creditor

Procedural Posture

Proposal Approval Under Insolvency Act 2006 and Adjudication Petition / Hearing (oral Judgment)

Legal Issues

  1. 1 Whether Westpac's proof of debt should be counted for the creditors' vote on the proposal
  2. 2 Whether the proposal obtained the statutory majority under s331(3) of the Insolvency Act 2006
  3. 3 Whether the court should approve the proposal under s333(3)(a) and s333(3)(c) of the Insolvency Act 2006

Ratio Decidendi

The proposal was not approved because Westpac's proof of debt limited to the Aranui Trust meant it could not properly be treated as supporting the proposal, so the statutory majority under s331(3) was not achieved and the court therefore would not and could not approve the proposal under s333(3). The adjudication of Julie Maree Scott as bankrupt was ordered because the debt remained unpaid and no ground existed to refuse adjudication.

Court Disposition

Proposal not approved; adjudication ordered

Orders

  • Proposal not approved
  • Julie Maree Scott adjudicated bankrupt (order made 8 July 2011 at 1:08 pm)