New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Alienation to defeat creditors (s60 property law act 1952)

Legal area

Court

4 Mar 2009

NZT1 LIMITED V OFFICIAL ASSIGNEE IN BANKRUPTCY OF THE PROPERTY OF SCOTT CRAWFORD ANDERSON HC WN CIV 2007-485-1270

Citation

openlaw-a2f45dda_39f1_4dc1_b190_a3093d65cde9.pdf
Court

High Court

The court refused to order immediate payment under s58(2)(b) because the applicant had not received funds, the estate value was unclear and disputed, and ordering payment risked double recovery; instead the court ordered transfer of the bankrupt's interest under s58(2)(a) and, pursuant to s58(3), required the applicant to grant a first ranking general security agreement over its and the trust's assets as security (notional amount $344,000).
30 Aug 2005

CHRISTOPHER DAVID BARR V THE OFFICIAL ASSIGNEE AS ADMINISTRATOR OF THE ESTATE OF GRAHAM GEOFFREY BARR HC WN CIV 2001-485-591

Citation

openlaw-a5b2e1f6_c264_43db_a7b4_b8367419e12e.pdf
Court

High Court

Payment of $40,000 was a repayment of loans but, given the bankrupt's precarious tax liabilities, borrowing to meet commitments and disposal of his sole major asset with all sale proceeds paid to the applicant, the payment was made with the dominant intention of preferring the applicant; the applicant failed to prove good faith, change of position and inequity under s58(6), so recovery was ordered and the disposition set aside.