Tailor v Official Assignee

[2025] NZHC 2729

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE

CIV-2025-404-002267

[2025] NZHC 2729

BETWEEN

BEENA JYATIN TAILOR and JYOTIN TAILOR

Plaintiffs

AND

THE OFFICIAL ASSIGNEE

Defendant

Hearing:	On the papers
Appearances:	R Latton for the Plaintiffs
Judgment:	18 September 2025

JUDGMENT OF ASSOCIATE JUDGE COGSWELL

This judgment was delivered by me on 18 September 2025 at 3.00 p.m. pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar Date.......................................

Solicitors:

Pidgeon Judd, Auckland R Latton, Auckland

TAILOR v THE OFFICIAL ASSIGNEE [2025] NZHC 2729 [18 September 2025]

[1]                 Beena  Jyatin  Tailor  and  Jyotin  Tailor  were   adjudicated   bankrupt   on  22 September 2022 on the application of the Commissioner of Inland Revenue.

[2]                 They now apply jointly for orders under s 309(1)(b) of the Insolvency Act 2006 (Act) annulling their bankruptcies. The Official Assignee does not oppose their applications.

[3]                 The Court must undertake a two-stage inquiry for an application under s 309 of the Act.     First, the Court must be satisfied that one of the grounds listed in         s 309(1)(a) to (d) are made out. Second, the Court must consider whether to exercise its discretion to annul the adjudication, with regard being had to the public interest and to the wishes of the parties to the application.

[4]                 The bankrupts’ applications are based on the ground that their debts have been met in full from realisations achieved during their bankruptcy.

[5]                 Both bankrupts filed affidavits sworn on 31 July 2025 which confirmed the realisation of assets from their respective estates and full payment to their respective creditors, including the costs of the Official Assignee.

[6]                 The Official Assignee has filed a report as to the bankrupts’ bankruptcies. The Official Assignee confirms that their respective debts and the Assignee’s costs have been paid in full, and that the Assignee has no objection to the annulment of the adjudications under s 309(1)(b) of the Insolvency Act 2006.

[7]                 The report of the Official Assignee traverses the numerous challenges made by the bankrupts to their bankruptcies, and the eventual mortgagee sale of their remaining property by their mortgagee, which resulted in net proceeds of $640,160.38, more than enough to repay the bankrupts’ creditors.

[8]                 The current position is that the Official Assignee holds the balance of the realisations for the first and second-named plaintiffs.

[9]                 The Official Assignee’s report confirms that as at 27 August 2025, and with the accrual of further interest and with the deduction of the partial payment of $10,000 to

both of the plaintiffs pursuant to s 163 of the Act, the Official Assignee currently holds the following sums in trust for the bankrupts:

(a)first-named plaintiff – $230,659.61;

(b)second-named plaintiff - $136,272.67.

[10]              The Official Assignee confirms that the administration of the plaintiffs’ bankrupt estates is complete, that they have paid the creditors’ claims in full, and are able to pay the balance of the Assignee’s costs from the funds held.

[11]              The Official Assignee confirms that the plaintiffs are solvent and there is no useful purpose in their remaining bankrupt.

[12]              On the first stage of inquiry under s 309 of the Act, I find that s 309(1)(b) is made out. On the second stage of inquiry, I consider that the Court’s discretion should be exercised in favour of the application.

[13]              I make an order under s 309(1)(b) of the Insolvency Act 2006 that the plaintiffs’ bankruptcies are annulled.

[14]Their adjudications are annulled from the date of this judgment.

Associate Judge Cogswell