Mao's Investment Limited v Read

[2016] NZHC 2242

IN THE HIGH COURT OF NEW ZEALAND INVERCARGILL REGISTRY

CIV-2015-425-000027 [2016] NZHC 2242

IN THE MATTER OF	The Insolvency Act 2006
AND
IN THE MATTER OF	The bankruptcy of LINDSAY JAMES READ
BETWEEN	MAOʼS INVESTMENTS LIMITED Judgment Creditor
AND	LINDSAY JAMES READ Judgment Debtor

Hearing:	21 September 2016
Appearances:	A Stephens for the Applicant (Bankrupt) R G McDonald for Official Assignee (excused)
Judgment:	22 September 2016

JUDGMENT OF ASSOCIATE JUDGE OSBORNE ANNULLING BANKRUPTCY

[1]      Lindsay James Read was adjudicated bankrupt on 27 August 2015.

[2]      Mr Read now applies for an order that his adjudication be annulled.   The grounds on which he seeks such an order are that his debts have been fully paid and that the Official Assignee’s costs incurred in the bankruptcy are covered by funds now held by the Assignee.

[3]      Section 309(1)(b) of the Insolvency Act 2006 empowers the Court on the application of the Assignee or any person interested to annul an adjudication if the

MAOʼS INVESTMENTS LIMITED v READ [2016] NZHC 2242 [22 September 2016]

Court is satisfied that the bankrupt’s debts have been fully paid or satisfied and that the Assignee’s fees and costs incurred in the bankruptcy have been paid.

[4]      The evidence filed by the bankrupt establishes the factual requirements for an order of annulment.  The evidence indicates that the bankrupt had at the time of his adjudication four creditors.

[5]      At the time the bankrupt was adjudicated, he was on the point of completing a sale of his Queenstown property.   The sale settlement funds became available following his bankruptcy.   The Assignee used those funds to repay the bankrupt’s creditors in full.   The Assignee has retained a sum sufficient to meet her costs and disbursements.

[6]      The bankrupt has served the application upon the prescribed persons.

[7]      The  Assignee   has   through   counsel   confirmed   the   above   matters   by memorandum and, in addition, provided a detailed letter explaining these developments, which has been exhibited. The Assignee consents to the annulment of the bankruptcy.

Orders

[8]      I order:

(a)       The adjudication in bankruptcy of Lindsay James Read made by this

Court on 27 August 2015 is annulled. (b)        The time of this order is 12.30 p.m.

(c)       The Assignee’s fees and disbursements are to be recovered from the funds held by the Assignee.

Associate Judge Osborne

Solicitors:

McAllister Todd Phillips, Queenstown

Whitlock & Co, Auckland (for Assignee)