NORTH SHORE LASER AND SKIN CENTRE LIMITED v MENZIES [2019] NZHC 315

NORTH SHORE LASER AND SKIN CENTRE LIMITED v MENZIES [2019] NZHC 315

Under s352(2) of the Insolvency Act 2006 a summary instalment order operates to bar creditors from continuing proceedings in any court in respect of debts included in the order unless the Official Assignee gives permission; the High Court no longer has a residual discretion to adjudicate a bankruptcy application where a summary instalment order has been made; accordingly the creditor's application for adjudication is dismissed.

Citation
[2019] NZHC 315
Parties
Judgment Creditor: North Shore Laser and Skin Centre Limited; Judgment Debtor: Anita Menzies
Court
High Court
Jurisdiction
New Zealand
Judgment Date
28 February 2019
Procedural Posture
Bankruptcy / Insolvency / Adjudication Application After Summary Instalment Order
Outcome
Application dismissed
Legal Topics
Summary Instalment Order, Official Assignee Powers, Stay of Proceedings, Adjudication in Bankruptcy, Costs
Insolvency Law Bankruptcy Civil Procedure Summary Instalment Order Official Assignee Powers Stay of Proceedings Adjudication in Bankruptcy Costs

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Parties

North Shore Laser and Skin Centre Limited

Judgment Creditor

Anita Menzies

Judgment Debtor

Procedural Posture

Bankruptcy / Insolvency / Adjudication Application After Summary Instalment Order

Legal Issues

  1. 1 Whether s352(2) bars continuation of bankruptcy proceedings after a summary instalment order without Official Assignee permission
  2. 2 Whether the High Court retains a residual discretion to adjudicate bankruptcy despite a summary instalment order in light of Re Sturdee
  3. 3 Whether the court should adjourn to permit further representations to the Official Assignee

Ratio Decidendi

Under s352(2) of the Insolvency Act 2006 a summary instalment order operates to bar creditors from continuing proceedings in any court in respect of debts included in the order unless the Official Assignee gives permission; the High Court no longer has a residual discretion to adjudicate a bankruptcy application where a summary instalment order has been made; accordingly the creditor's application for adjudication is dismissed.

Court Disposition

Application dismissed

Orders

  • Bankruptcy application dismissed
  • Costs awarded to the judgment creditor for steps taken up to 4 October 2018 to be assessed on a category 2 basis; any dispute to be referred to Associate Judge R M Bell