Hose

IN THE HIGH COURT OF NEW ZEALAND HAMILTON REGISTRY

CIV-2014-419-461 [2014] NZHC 3160

UNDER
Part 19 of the High Court Rules and the

Insolvency Act 2006

IN THE MATTER

of the bankruptcy of Carl John Henderson

IN THE MATTER

of an application for a vesting order in respect of land and pursuant to s 119

Insolvency Act 2006

SAPPHIRE KIMBERLEY HOSE Applicant

On the papers

Counsel:

CW Grenfell for applicant

Judgment:

11 December 2014

JUDGMENT OF FAIRE J

This judgment was delivered by me on 11 December 2014 at 11 am, pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Date……………

Solicitors: Edmonds Judd, Te Awamutu

Re Hose [2014] NZHC 3160 [11 December 2014]

[1] There are two applications before me today, namely:

(a) A without notice interlocutory application seeking leave to bring an application under Part 19 of the High Court Rules and seeking directions as to service; and

(b)An originating application seeking a vesting order pursuant to s 119 of the Insolvency Act 2006.

[2] The applications are made in respect of a property at 35/1 Ahier Street, Te

Awamutu, being the land contained in certificate of title SA26B/781 being Lot 56

Deposited Plan South Auckland 23454. The application is made as a consequence of one of the proprietors of the property being adjudicated a bankrupt on 28 May
2012. On 3 August 2012 the Official Assignee disclaimed any interest in the property.

[3] As a consequence of the Official Assignee’s actions the property of the

bankrupt vests in the Crown bona vacantia.

[4] There is attached to the materials produced a letter from a solicitor on behalf of the Treasury which confirms the following:

1.Following the Official Assignee’s disclaimer of the ownership interest in the Property formerly held by Carl John Henderson that ownership interest passed to the Crown.

2.The Crown has no interest in claiming or exercising an ownership interest in the Property.

3.The Crown does not object to the Court making an Order that the former ownership interest of Carl John Henderson in the Property be vested in Sapphire Kimberley Hose.

4.The Crown does not wish to be served or otherwise involved in any application to the Court for the vesting order and will abide the order of the Court.

[5] The bankrupt, Mr Carl John Henderson, has filed an affidavit advising of his consent to the making of orders vesting the half-share formerly in his name in the applicant.

[6] Having regard to these matters, I make orders in terms of both applications as

moved.

JA Faire J

CaseChat Overview and Summary

The case of Sapphire Kimberley Hose v Carl John Henderson involves two applications: an interlocutory application seeking leave to bring an application under Part 19 of the High Court Rules and directions for service, and an originating application seeking a vesting order pursuant to section 119 of the Insolvency Act 2006. The property in question is located at 35/1 Ahier Street, Te Awamutu, Lot 56 Deposited Plan South Auckland 23454. The application arises from the adjudication of one of the property's proprietors as a bankrupt on 28 May 2012. The Official Assignee disclaimed any interest in the property on 3 August 2012, resulting in the property vesting in the Crown as bona vacantia. The Treasury, representing the Crown, has confirmed that it has no interest in claiming or exercising an ownership interest in the property and does not object to the court making an order that vests the former ownership interest of Carl John Henderson in the applicant. The bankrupt, Carl John Henderson, has also consented to the making of orders vesting the half-share formerly in his name in the applicant.

The court was required to decide whether the applicant, Sapphire Kimberley Hose, was entitled to a vesting order vesting the former ownership interest of Carl John Henderson in the property. The legal issues involved interpreting the Insolvency Act 2006 and the High Court Rules to determine if the court had the authority to make such an order and if the applicant met the necessary requirements. The court also needed to consider the consent of the Crown and the bankrupt to the vesting order.

The court held that it had the authority to make the vesting order under section 119 of the Insolvency Act 2006 and the High Court Rules. The court found that the applicant met the necessary requirements for the order, including the consent of the Crown and the bankrupt. The court therefore made orders in terms of both applications as moved, vesting the former ownership interest of Carl John Henderson in the applicant, Sapphire Kimberley Hose.

The final orders of the court were to grant leave to bring the vesting order application and to vest the former ownership interest of Carl John Henderson in the applicant, Sapphire Kimberley Hose. The court's decision provides guidance on the interpretation of the Insolvency Act 2006 and the High Court Rules in relation to vesting orders and the requirements for such orders.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

UNDER	Part 19 of the High Court Rules and the Insolvency Act 2006
IN THE MATTER	of the bankruptcy of Carl John Henderson
IN THE MATTER	of an application for a vesting order in respect of land and pursuant to s 119 Insolvency Act 2006
SAPPHIRE KIMBERLEY HOSE Applicant

On the papers
Counsel:	CW Grenfell for applicant
Judgment:	11 December 2014