THE COMMISSIONER OF INLAND REVENUE v V SINGH and Y SINGH [2015] NZHC 1653
The Court exercised its discretion under s38 Insolvency Act 2006 to halt the bankruptcy adjudication and defer the bankruptcy hearing until after the scheduled judicial review because the review raises a central issue—whether the Commissioner may pursue bankruptcy despite its officers having agreed the debtors are...
Source-derived case information.
- Citation
- THE COMMISSIONER OF INLAND REVENUE v V SINGH and Y SINGH [2015] NZHC 1653
- Parties
- Judgment Creditor: Commissioner of Inland Revenue; Judgment Debtor: Veena Singh; Judgment Debtor: Yagashwar Singh
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 15 July 2015
- Procedural Posture
- Bankruptcy Application / Interim Decision Pending Judicial Review
- Outcome
- Bankruptcy adjudication halted pursuant to section 38 Insolvency Act 2006 pending determination of the judicial review; bankruptcy hearing deferred until after the review decision.
- Legal Topics
- Bankruptcy Notices, Serious Hardship, Stay of Adjudication, Section 38 Insolvency Act 2006, Judicial Review, Interim Orders
Source-derived case record
Summary, issues, holding and outcome
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Parties
Commissioner of Inland Revenue
Judgment Creditor
Veena Singh
Judgment Debtor
Yagashwar Singh
Judgment Debtor
Procedural Posture
Bankruptcy Application / Interim Decision Pending Judicial Review
Legal Issues
- 1 Whether the Court should exercise its discretion under s38 of the Insolvency Act 2006 to halt adjudication pending judicial review
- 2 Whether the Commissioner may pursue bankruptcy proceedings when the Commissioner's officers have agreed the judgment debtors are persons in serious hardship
Ratio Decidendi
The Court exercised its discretion under s38 Insolvency Act 2006 to halt the bankruptcy adjudication and defer the bankruptcy hearing until after the scheduled judicial review because the review raises a central issue—whether the Commissioner may pursue bankruptcy despite its officers having agreed the debtors are in serious hardship—and the review will be heard expeditiously within a short delay (less than three months).
Court Disposition
Bankruptcy adjudication halted pursuant to section 38 Insolvency Act 2006 pending determination of the judicial review; bankruptcy hearing deferred until after the review decision.
Orders
- Halt/stay adjudication under section 38 of the Insolvency Act 2006 pending judicial review
- Review hearing fixed for 8 October 2015 (one day)
Full Case Text
Judgment text and source record
1 paragraphs
THE COMMISSIONER OF INLAND REVENUE v V SINGH and Y SINGH [2015] NZHC 1653 [15 July 2015]IN THE HIGH COURT OF NEW ZEALANDAUCKLAND REGISTRYCIV 2014-404-002753CIV 2014-404-002097[2015] NZHC 1653UNDER High Court Rule 24.18IN THE MATTER OF An application for bankruptcyBETWEEN THE COMMISSIONER OF INLANDREVENUEJudgment CreditorAND VEENA SINGHJudgment DebtorYAGASHWAR SINGHJudgment DebtorHearing: 15 July 2015Appearances: M J Hartfield for Judgment CreditorD P Weaver for the Judgment DebtorsJudgment: 15 July 2015INTERIM DECISION OF ASSOCIATE JUDGE CHRISTIANSENThis judgment was delivered by me on15.07.15 at 4:30pm, pursuant toRule 11.5 of the High Court Rules.Registrar/Deputy RegistrarDate[1] This matter concerns the bankruptcy applications of the Commissioner ofInland Revenue (the Commissioner). Today's hearing date was scheduled byAssociate Judge Bell after applications challenging the bankruptcy notices weredismissed or discontinued, and before the judgment debtors heralded reviewapplication was filed.[2] The main focus of counsels' submissions concerned each party's positionupon the review application.[3] It is now apparent that a one day hearing has been set down to hear the review application on 8 October 2015. Before then the matter is to be called in the Duty Judge list at 11:45am on 29 July 2015 to deal with interim order applications.[4] As advised to counsel at the conclusion of today's hearing it was the Court'sview that the review hearing was proceeding expeditiously for determination and inthose circumstances it would be appropriate to use the Court's discretion pursuant toSection 38 of the Insolvency Act 2006 to halt the applications for adjudication. One of the issues for determination at the review hearing will be whether or not theCommissioner has recourse to bankruptcy proceedings when the Commissioner's officers have agreed that the judgment debtors are persons "in serious hardship".[5] In all the circumstances it seemed to the Court it was appropriate to defer the bankruptcy hearing for call on a date after the review is heard and a decision on that is given. The delay is less than three months.[6] I have described this as an interim decision. I propose to add the Court'ssummary of those matters for consideration at judicial review in the hope it may be of assistance to the Judge hearing that review in due course.Associate Judge Christiansen