Commissioner of Inland Revenue v Stevens

[2025] NZHC 970

IN THE HIGH COURT OF NEW ZEALAND CHRISTCHURCH REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTAUTAHI ROHE

CIV-2025-409-079

[2025] NZHC 970

IN THE MATTER

of the Insolvency Act 2006

AND

IN THE MATTER

of the bankruptcy of TIARI ADELAIDE STEVENS

BETWEEN

THE COMMISISONER OF INLAND REVENUE

Judgment Creditor

AND

TIARI ADELAIDE STEVENS

Judgment Debtor

Hearing:	On the papers
Counsel:	A McAvoy for Judgment Creditor
Judgment:	24 April 2025

JUDGMENT OF ASSOCIATE JUDGE PAULSEN

(Substituted service)

This judgment was delivered by me on 24 April 2025 at 3.45 pm pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar Date:

THE COMMISISONER OF INLAND REVENUE v STEVENS [2025] NZHC 970 [24 April 2025]

[1]                 The judgment creditor, the Commissioner of Inland Revenue, obtained a judgment against the judgment debtor, Tiari Stevens, in the District Court on 29 July 2024. It now wishes to obtain an order adjudicating Ms Stevens bankrupt.

[2]                 The Commissioner applied for and obtained the issue of a bankruptcy notice from this Court but has been unable to personally serve the bankruptcy notice upon Ms Stevens. It applies for an order for substituted service of the bankruptcy.

[3]                 In the usual course a bankruptcy notice must be served personally on a judgment debtor. However, r 6.8 of the High Court Rules 2016 provides for substituted service in the following terms:

6.8      Substituted service

(1)If reasonable efforts have been made to serve a document by a method permitted or required under these rules, and either the document has come to the knowledge of the person to be served or it cannot be promptly served, the court may—

(a)direct—

(i)that instead of service, specified steps be taken that are likely to bring the document to the notice of the person to be served; and

(ii)that the document be treated as served on the happening of a specified event, or on the expiry of a specified time:

(b)when steps have been taken for the purpose of bringing, or which have a tendency to bring, the document to the notice of the person on whom it is required to be served, direct that the document be treated as served on that person on a specified date:

(c)subject to any conditions that the court thinks just to impose, dispense with service of a document on a person and give to the party by whom the document is required to be served leave to proceed as if the document had been served.

(2)If a direction is given under subclause (1)(a) in respect of a document, the document must be treated as having been served at the place—

(a)at which the document is likely to have come to the notice of the person to be served; or

(b)where that person was or is likely to have been on the happening of the event or the expiry of the time specified under subclause (1)(a)(ii).

[4]                 To obtain an order for substituted service an applicant will generally be required to show that:

(a)reasonable efforts have been made to serve a document;

(b)a document cannot promptly be served or has come to the knowledge of the person to be served; and

(c)the proposed method/s of substituted service will be likely to bring the document to the notice of the person to be served.

Efforts to serve the bankruptcy notice

[5]                 The District Court ordered that the proceedings before it were to be served on Ms Stevens by delivering them to an adult occupant at an address referred to in paragraph 1(b)(i) of the notice of application for substituted service where she was known to be living (the residential address).

[6]                 Upon the issue of the bankruptcy notice in this proceeding the Commissioner instructed a process server company to personally serve the bankruptcy notice on  Ms Stevens at the residential address.

[7]                 The process server attempted to serve Ms Stevens on 24 February 2025 and spoke to a female occupant who said she lived at the address but had not heard of  Ms Stevens. For that reason, service was not effected at that time.

[8]                 The Commissioner has made subsequent enquiries and has been provided with information that confirms Ms Stevens does in fact live at the residential address and has done so since December 2017. It is a fair inference in those circumstances that Ms Stevens has deliberately attempted to avoid service of the bankruptcy notice.

Documents cannot be promptly served

[9]                 I am satisfied that in the absence of cooperation from Ms Stevens the bankruptcy notice may not be served personally upon her.

Would  service  in  the  manner  proposed  bring  the  bankruptcy  notice  to   Ms Stevens’ attention?

[10]The evidence before me satisfies me that:

(a)Ms Stevens lives at the residential address;

(b)the Commissioner holds an up-to-date email address for her; and

(c)the Commissioner holds cell-phone numbers which Ms Stevens is using.

[11]            The Commissioner has sought directions that substituted service is to be effected in the following manner:

(a)by delivering the bankruptcy notice and a copy of the order on this application to an adult occupant at the residential address or by placing the bankruptcy notice and the order in a sealed envelope addressed to Ms Stevens and affixing it to the front door of the residential address;

(b)by emailing  a  copy  of  the  bankruptcy  notice  and  the  order  to  Ms Stevens at her email address; and

(c)by sending a text message to two cell-phone numbers known to be operated by Ms Stevens advising that the bankruptcy notice and a copy of the order made on this application had been delivered to the residential address.

[12]            I am satisfied that the bankruptcy notice will come to Ms Steven’s attention if service is effected in this manner.

[13]            It is therefore appropriate in these circumstances for an order for substituted service to be made.

Result

[14]            I dispense with personal service of the bankruptcy notice upon Ms Stevens and direct substituted service of the bankruptcy notice upon her in the following manner:

(a)by delivering a copy of the bankruptcy notice and a copy of the sealed order made on this application to an adult occupant at the residential address referred to in paragraph 1(b)(i) of the notice of application for substituted service or by placing the bankruptcy notice and the order made on this application in a sealed envelope addressed to Ms Stevens and affixing the envelope to the front door of the residential address;

(b)by emailing a copy of the bankruptcy notice and the sealed order made on this application to Ms Stevens at the email address referred to in paragraph 1(b)(ii) of the notice of application; and

(c)by sending a text message to the cell-phone numbers referred to in paragraph 1(b)(iii) of the notice of application notifying Ms Stevens that the bankruptcy notice and a copy of the order had been delivered to the residential address referred to in paragraph 1(b)(i) of the notice of application and the date and time when this occurred.

[15]            Service of the bankruptcy notice shall be deemed to be effected one working day following completion of the steps in [14] above.

[16]            I reserve leave for the Commissioner to apply by memorandum to serve any further documents in this proceeding by way of substituted service. The Commissioner will need to provide details of any communications with Ms Stevens, confirm that subsequent steps have been taken to serve such documents upon her and any further information about her whereabouts.

[17]The costs of this application are reserved.

O G Paulsen Associate Judge

Solicitors:
Legal Services, Inland Revenue, Christchurch