Price v The Commissioner of Inland Revenue HC Auckland CIV 2008-404-004370

[2008] NZHC 2646

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV 2008-404-004370

IN THE MATTER OF     the Insolvency Act 2006

BETWEEN  JAMES HEWITT PRICE Judgment Debtor

ANDTHE COMMISSIONER OF INLAND REVENUE

Judgment Creditor

Hearing:         On the papers

Appearances: Judgment Debtor in person

C K Wood for Judgment Creditor

Judgment:      24 October 2008

JUDGMENT OF ASSOCIATE JUDGE ROBINSON

This judgment was delivered by me on 24 October 2008 at 3 pm, Pursuant to Rule 540(4) of the High Court Rules

Registrar/Deputy Registrar

Date……

Solicitors:        Crown Solicitor, PO Box 2213, Auckland

PRICE V THE COMMISSIONER OF INLAND REVENUE HC AK CIV 2008-404-004370  24 October 2008

[1]      Mr Price who is the judgment debtor applies to set aside a bankruptcy notice issued by The Commissioner of Inland Revenue. The bankruptcy notice seeks payment of $255,370.54 with costs being the amount payable by Mr Price to The Commissioner of Inland Revenue pursuant to a decision of the District Court at Papakura on 26 November 2007.

[2]      Mr Price’s application to set aside the bankruptcy notice came on for hearing before me on 10 September 2008 when I made certain directions as to the filing of affidavits as the application by Mr Price was being opposed. I also directed at that time that the proceedings be set down for a one hour fixture at 3 pm on 31 October

2008.

[3]      Included in the grounds advanced by Mr Price in support of his application to set aside the bankruptcy notice is a claim that the decision of the Papakura District Court which, forms the basis of the bankruptcy notice was wrong. I pointed out to Mr Price on 10 September 2008 that this Court could not overturn the Papakura District Court decision that forms the basis of the bankruptcy notice. I also informed Mr Price that if he wished to contest the validity of the Papakura District Court’s decision, he would need to bring an appropriate application in the Papakura District Court.

[4]      I am informed by counsel for The Commissioner of Inland Revenue and Mr

Price, that the parties have complied with the directions I made on 10 September

2008. Mr Price has also applied to the Papakura District Court to set aside the judgment that forms  the basis  of  the bankruptcy notice.  That  application  is  for hearing in the Papakura District Court on 11 November 2008. The application will be opposed by The Commissioner of Inland Revenue.

[5]     In those circumstances, The Commissioner of Inland Revenue seeks an adjournment of Mr Price’s application to set aside the bankruptcy notice pending the hearing of Mr Price’s application to set aside the Papakura District Court judgment. Mr Price has indicated that he consents to that adjournment on the basis that the

High  Court  cannot  set  aside  the  Papakura  District  Court’s  decision  in  the proceedings to set aside the bankruptcy notice.

[6]      In  the  circumstances,  I  am  satisfied  that  it  would  not  be  appropriate  to proceed with the application to set aside the bankruptcy notice until the outcome of Mr Price’s application to set aside the judgment in the Papakura District Court is available.

[7]      Consequently, I am satisfied that the application to set aside the bankruptcy notice will need to be adjourned. At this stage, I will adjourn the application to a telephone conference to be held at a convenient time after 11 November 2008. The purpose of the conference will be to discuss with Mr Price and counsel for The Commissioner of Inland Revenue the progress of the proceedings pending in the Papakura District Court to set aside the judgment and further directions for the

hearing of these proceedings to set aside the bankruptcy notice.

Associate Judge Robinson