New Zealand Case Law: Decisions & Judgments

Topic

Adjudication of bankrupt

Legal area

Court

27 Oct 2021

WILLIS STREET PARKING LIMITED v KUMAR [2021] NZHC 2866

Citation

[2021] NZHC 2866
Court

High Court

The Court adjudicated the debtor bankrupt because the creditor established the jurisdictional facts (non-compliance with the bankruptcy notice constituting an act of bankruptcy) and the debtor failed to establish that the s37 discretion should be exercised to refuse adjudication; given the personal guarantees, potential access to family-trust resources, and public interest in Official Assignee oversight, adjudication was appropriate, subject to a short period for payment.
22 Feb 2019

STUFF LTD v ARNOLD [2019] NZHC 240 .

Citation

[2019] NZHC 240
Court

High Court

Leave to file an opposition out of time was refused because the debtor had no reasonable prospect of successfully opposing adjudication: she had sworn she could meet any costs award, provided no full and credible explanation for the apparent change in ability to pay, offered no viable creditors' proposal, and the inability to continue as a director is a standard consequence of bankruptcy which does not make adjudication unjust or inequitable; accordingly the creditor's adjudication application succeeded.
27 Jan 2015

THE OFFICIAL ASSIGNEE v STRETTON [2015] NZHC 33

Citation

[2015] NZHC 33
Court

High Court

Because the defendant concealed bank and KiwiSaver assets and misled the Official Assignee after having been admitted to the no asset procedure, the Court preserved the funds held by Westpac and directed payment to the Official Assignee so the Official Assignee can identify creditors, make proper payments, and distribute any surplus to the defendant, with leave to apply for further directions and costs reserved.
20 Feb 2013

GWYER V WESTPAC NZ LTD HC AK CIV-2012-404-003049

Citation

openlaw-de022d8c_41af_48f5_b7be_eed61a973bed.pdf
Court

High Court

The Court exercised its discretion under s 38 to halt the creditor's application because the debtor produced a bona fide loan contract and a realistic prospect that an imminent Family Court conference could produce payment from funds held by the Public Trust, the stay was of limited duration and the debtor had no other assets, so the creditor would not be prejudiced unduly and the stay could materially assist satisfaction of the judgment.
6 May 2011

TRUSTEES EXECUTORS LTD V BRUCE RENNICK LAYBOURN HC AK CIV-2010-404-001994

Citation

openlaw-9d6b6ceb_319e_46a6_8a08_978b9d49f5f5.pdf
Court

High Court

Jurisdictional facts were established (debt and act of bankruptcy) and on exercise of the court's discretion the debtor failed to demonstrate that adjudication would be unjust or inequitable; the Wanaka property's realistic market value left a substantial shortfall for the creditor, the creditor was entitled to be held to account under the guarantee, and adjudication would enable investigation of the debtor's affairs (including trust transactions) to protect creditors' interests, therefore adjudication ordered.
6 May 2010

GORMAN VERMEL INTERNATIONAL FREIGHT LIMITED V RP DURNEY HC NAP CIV-2009-441-744

Citation

openlaw-56c25f89_99b5_47a8_a288_989938cd3efa.pdf
Court

High Court

The court adjudicated the debtor bankrupt because on the debtor's own figures he was manifestly insolvent, the Part 5 proposal was speculative, filed late and unlikely to satisfy s33(3), and the circumstances warranted appointment of the Official Assignee to investigate; therefore adjudication and costs were ordered.
5 Mar 2009

ANZ NATIONAL BANK LIMITED V LEE HC AK CIV 2008-404-005932

Citation

openlaw-b83a44a3_787c_44e8_bdd2_f42d02e5d98c.pdf
Court

High Court

Given prior judicial consideration that the counterclaim lacked substance and the appellant had ample opportunity to pursue the counterclaim and appeal, and because any arguable grounds can be pursued by the Official Assignee, it was not in the interests of justice to delay; failure to comply with the bankruptcy notice therefore amounted to an act of bankruptcy and adjudication was ordered.
6 Nov 2008

KORDA MENTHA & ANOR V SIEMER HC AK CIV 2007-404-007665

Citation

openlaw-a1b3a503_5d89_4615_9809_aad29a5d6523.pdf
Court

High Court

Jurisdictional requirements under s23 were met; the debtor failed to provide credible evidence of ability to pay and failed to establish a genuine triable set-off or a properly pleaded and pending proceeding to set aside the underlying judgments for fraud; collateral attack in the bankruptcy forum was inappropriate and there was no basis to stay the petition under s26(5) or (7); public interest favoured adjudication, therefore the debtor was adjudicated bankrupt.
1 Sept 2008

FOUNDATION SECURITIES (NZ) LIMITED V ROBYN MARIE CASE HC AK CIV 2007-404-6964

Citation

openlaw-79d0f71d_0933_47f1_9034_a617a9e6aa0b.pdf
Court

High Court

The petitioning creditor proved an available act of bankruptcy (failure to comply with a properly served bankruptcy notice), the debtor failed to demonstrate ability to pay debts as they arise or within a reasonable time, and the petitioning creditor's security was effectively valueless or exceeded by creditors (and would be lost to IRD priority under s50); accordingly the Court must adjudicate the debtor bankrupt and grant the petition.
27 Aug 2008

ELLIS V ROCHIS LIMITED HC NAP CIV 2007-441-914

Citation

openlaw-7302dfce_e50a_495c_bc5e_2459b6a1d163.pdf
Court

High Court

The debtor committed an act of bankruptcy by failing to comply with a properly served bankruptcy notice; the named debtor was correctly identified because he uses and answered to both names and consented to the earlier judgment; the alleged settlement was not a binding contract and did not prevent proceedings; the debtor is insolvent and, on the evidence, it is just and equitable to make an order for adjudication.