Official Assignee v Watercare Services Limited

[2023] NZHC 1061

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2020-404-107

[2023] NZHC 1061

UNDER

the Insolvency Act 2006

IN THE MATTER OF

the bankruptcy of LORRAINE JANET PARKER

BETWEEN

THE OFFICIAL ASSIGNEE

Plaintiff

AND

WATERCARE SERVICES LIMITED

First Defendant

LORRAINE JANET PARKER

Second Defendant

Hearing:	4 May 2023
Counsel:	C T Jones for the Applicant
Judgment:	5 May 2023

JUDGMENT OF ASSOCIATE JUDGE BRITTAIN

This judgment was delivered by me on 5 May 2023 at 12.00 pm.

Pursuant to Rule 11.5 of the High Court Rules.

…………………..

Registrar/Deputy Registrar

Solicitors/Counsel:
Insolvency and Trustee Service, Auckland

THE OFFICIAL ASSIGNEE v WATERCARE SERVICES LIMITED [2023] NZHC 1061 [5 May 2023]

[1]    On 23 July 2020, Lorraine Parker was adjudicated bankrupt. The Official Assignee now applies for an order under s 309(1)(b) of the Insolvency Act 2006, annulling the adjudication.

[2]    The application has been served on the judgment creditor, Watercare Services Limited (Watercare). It does not oppose the annulment.

[3]    The application was served on Ms Parker on 29 March 2023, in the evening. That was the day before the application was first called on 30 March 2023. Ms Parker failed to appear on 30 March 2023 and has made no contact with the Court. I am satisfied that the late service of the application has not prejudiced Ms Parker, because the order sought is in her interests.

[4]    Ms  Parker  is  the  registered   proprietor   of   a   residential   property   at  17 Sheppard Avenue, Mount Roskill, Auckland, which is where she resides. The certificate of title confirms that there are no mortgages registered against the property.

[5]    It appears that Ms Parker has failed to appreciate her obligations as a property owner in respect of charges for water due to Watercare, and property rates due to Auckland Council. Ms Parker was adjudicated bankrupt on the basis of unpaid water charges owed to Watercare.

[6]    The Official Assignee’s application is supported by an affidavit from Tony Lowe, a Deputy Assignee. Mr Lowe confirms that Ms Parker was solvent at the time of her adjudication. Ms Parker had sufficient funds on hand to pay the debt to Watercare and to pay outstanding rates to Auckland Council, but elected not to do so. The Official Assignee discharged those obligations after the adjudication. There was a small surplus of funds, which was returned to Ms Parker.

[7]    Mr Lowe has deposed that Ms Parker failed to cooperate with the Official Assignee during her bankruptcy. If that lack of cooperation continues, it is likely that Ms Parker will not complete the statement of affairs necessary to bring about her automatic discharge from bankruptcy.

[8]    The Official Assignee brings this application to ensure that Ms Parker’s bankruptcy ends, and the property at 17 Sheppard Avenue re-vests in Ms Parker. The order sought is plainly in Ms Parker’s interests.

[9]    Mr Lowe has confirmed that the Official Assignee advertised for further claims by creditors, by publication of notices in the New Zealand Herald and on the Insolvency Register. No other creditors have come forward.

[10]I make the following orders:

(a)an order under s 309(1)(b) of the Insolvency Act 2006, annulling the adjudication of Ms Parker;

(b)the Official Assignee may pay any further debt owed by Ms Parker to Watercare that has accrued since 15 September 2022;

(c)any unpaid reasonable remuneration for the Assignee’s services to the date of these orders may be paid from funds held;

(d)any surplus funds shall be returned to Ms Parker.

Associate Judge Brittain