New Zealand Case Law: Decisions & Judgments

Topic

Insolvent gift

Legal area

Court

13 Mar 2020

OFFICIAL ASSIGNEE v SINGH [2020] NZHC 180

Citation

[2020] NZHC 180
Court

High Court

The waiver of the $118,000 deposit was an insolvent gift made within two years of adjudication that diminished the bankrupt's assets; the respondent's loan-repayment account lacked credible contemporaneous evidence; because the waiver operated as forgiveness of debt (not a transfer of property) s 207 relief is not available, but the irregular transaction is cancelled under s 206 and the Official Assignee must pursue recovery as a debt by ordinary means.
15 Nov 2017

OFFICIAL ASSIGNEE v MWA CONSULTANTS LTD & ORS [2017] NZHC 2801

Citation

[2017] NZHC 2801
Court

High Court

The payments and assignments of the inheritance were insolvent gifts/voidable dispositions made within two years before adjudication; RedCo and MWAC cannot establish the s208 good faith defence (knowledge and intention of sole director/shareholder imputed); accordingly the transactions are cancelled and RedCo and MWAC are ordered to pay to the Assignee under s207 Insolvency Act; the Assignee lacks statutory standing to pursue compensation under s348 PLA so those PLA remedies were dismissed; the KD Trust was not a sham on the evidence.
8 Mar 2017

OFFICIAL ASSIGNEE v CARRIM [2017] NZHC 367

Citation

[2017] NZHC 367
Court

High Court

The Court found that the deeded gifts to the trustees and the demonstrated components of value (deposit, couple's cash and equity from loan repayment) resulted in a reducible transfer of value totalling $74,342.87, of which the bankrupt's 50% share was $37,170.53; estoppel by deed barred the respondent from denying the deeded gift amounts; the Assignee failed to prove that the $27,000 deposits were the bankrupt's money so no recovery was ordered in respect of the alleged additional gift; accordingly the Court ordered the respondent to pay $37,170.53 under s 207 and dismissed the other recover…
3 Oct 2013

THE OFFICIAL ASSIGNEE v R J WILLIAMSON [2013] NZHC 2579

Citation

[2013] NZHC 2579
Court

High Court

The transfer of $253,131.76 was a voidable insolvent gift (alternatively an insolvent transaction) made within the statutory period preceding bankruptcy; the respondent failed to prove an enforceable guarantee or that he acted in good faith and without reasonable grounds to suspect insolvency and did not give real value or irrevocably alter his position, therefore the Official Assignee is entitled to set aside the payment and recover the funds.
8 Sept 2008

THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF CLARKSON V STEPHENS HC TAU CIV 2008-470-460

Citation

openlaw-11f88512_aba3_4a34_9008_bab5e3190770.pdf
Court

Unknown Court

The s206 notice was properly served and no objection was lodged; the respondent failed to prove any of the s208 defences (good faith, reasonable person standard, or having given value/altered position); the gift was an insolvent transfer that prevented payment to creditors; accordingly the Court ordered re-transfer/payment of the ordered amount to the Official Assignee and costs.

New Zealand Case Law

OFFICIAL ASSIGNEE v SINGH [2020] NZHC 180

OFFICIAL ASSIGNEE v MWA CONSULTANTS LTD & ORS [2017] NZHC 2801

OFFICIAL ASSIGNEE v CARRIM [2017] NZHC 367

THE OFFICIAL ASSIGNEE v R J WILLIAMSON [2013] NZHC 2579

THE OFFICIAL ASSIGNEE IN THE BANKRUPTCY OF CLARKSON V STEPHENS HC TAU CIV 2008-470-460