IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV-2023-404-2468
[2024] NZHC 1223
IN THE MATTER of the Insolvency Act 2006 AND
IN THE MATTER
of the bankruptcy of Jayshree Ratilal Patel
BETWEEN
HEMANTKUMAR RATILAL PATEL
Judgment Creditor
RITA PATEL
Judgment CreditorKRISAJ PROPERTIES LIMITED
Judgment Creditor
AND
JAYSHREE RATILAL PATEL
Judgment Debtor
Hearing: 8 May 2024 Appearances:
K B Arthur for Judgment Creditors
J R Patel, Judgment Debtor in-person
Judgment:
16 May 2024
JUDGMENT OF ASSOCIATE JUDGE LESTER
This judgment was delivered by me on 16 May 2024 at 3:00 pm pursuant to Rule 11.5 of the High Court Rules
Registrar/Deputy Registrar
…………………………….
PATEL v PATEL [2024] NZHC 1223 [16 May 2024]
[1] In this judgment I refer to the parties by their first names, adopting the approach of Harland J in her substantive judgment between the parties that led to her making a costs judgment against the judgment debtor, Jayshree Patel (Jayshree).
[2] Hemantkumar Patel (Hemant) is Jayshree’s brother and Rita Patel (Rita) is Hemant’s wife. Krisaj Properties Limited (KPL) is a property owning company owned by Hemant and Rita.
[3] Jayshree issued proceedings against Hemant, Rita and KPL relating to the estate of Hemant and Jayshree’s late parents. The full background to that proceeding is set out in Harland J’s judgment of 20 December 2022.1 In that proceeding, Jayshree represented herself and she continues to do so. Jayshree sued her brother, sister-in- law and their company, as well as Hemant in his capacity as the executor of his parents’ estates.2 Jayshree was unsuccessful in her claim leading to a costs judgment issued by Harland J on 13 June 2023.
[4] The creditors have issued a bankruptcy notice against Jayshree which she has applied to set aside.
Who has the benefit of the costs order?
[5] While Hemant, as executor of his parents’ estate, was a defendant in the substantive proceedings, he did not seek an order for costs in that capacity.
[6] Paragraph [1] of Harland J’s decision, records the application for costs is by all defendants save Hemant as executor.3 The order of her Honour at [24] of the costs judgment is that:
[24] [Jayshree] is ordered to pay the first, second and third defendants’ costs and disbursements. I award costs and disbursements as outlined in appendix 1 of the application, being a total amount of $58,866.
1 Patel v Patel [2022] NZHC 3567.
2 Hemant and Jayshree’s father died many years before their mother leaving his estate to his wife. Reference to ‘the estate’ in this Judgment is to Hemant and Jayshree’s mother’s estate while both estates were in issue in the substantive proceeding.
[25] Interest is awarded from the date of judgment4 to the date of payment in accordance with pt 1 and ss 9 and 10 of the Interest on Money Claims Act 2016.
[7]Jayshree actively opposed…
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- Patel v Patel [2024] NZHC 1223
- Case
- [2024] NZHC 1223
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CaseChat Overview and Summary
The court found that Jayshree's objections to the costs order were not valid as they were raised too late. Jayshree's claims regarding money withdrawn from her mother's estate or WINZ overpayments did not amount to a defence. Jayshree's claim that her mother's estate had not been distributed was rejected as Jayshree's litigation was responsible for the delay. Jayshree's alleged constructive trust claim in respect of two properties was found to be extremely weak and not a genuine triable cross-claim.
Given Jayshree's ongoing litigation against her parents' estate, the court dismissed the application to set aside the bankruptcy notice. The court ordered that costs should follow the event on a 2B basis together with disbursements as fixed by the Registrar.
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