Bankruptcy declaration prevented

Press, 17 July 1980, Page 7

Bankruptcy declaration prevented

The last-minute payment of a debt for $7060 stopped the hearing of a petition in the High Court yesterday to have Allan Michael Rhodes, a company director, declared bankrupt.

Mr Justice Casey struck out the petition after he was informed that Mr Rhodes had paid Roger James Vivian, a consulting engineer, $7076.

There were two petitions before the Court yesterday to have Mr Rhodes declared bankrupt. When the first was called soon after 10 a.m. Mrs M. R. Evans, who appeared for the petitioning creditor, the Government Insurance Commissioner, said that a

cheque for $9059 had been received in payment of the debt and she applied to have the petition struck out, which his Honour did. The second petition to have Mr Rhodes declared bankrupt was filed on behalf of Mr Vivian, who was represented by Mr J. H. Blair. Mr Blair asked that the hearing of the petition proceed. Service had been unable to be effected on Mr Rhodes who had taken steps to avoid, it but notice had been served on his solicitor (Mr E. H. Parsons). A motion to set aside the judgment awarded Mr Vivian in March should not be allowed because it was merely another stalling tactic on the part of .Mr Rhodes. Mr C. A. McVeigh, who appeared for Mr Rhodes, asked that the bankruptcy petition be adjourned for a week. He said that certain papers were being .prepared so that a notice of motion could be filed giving the grounds why Mr Rhodes wanted the original judgment set aside. Mr Rhodes had not been served so the matter could not proceed anyway.

“Are you or are you not re-

presenting Mr Rhodes?” ask- I ed his Honour. 1 Mr McVeigh said that he i had already stated that he was. | “Then if that is the case there is no need for personal service on your client,” said his Honour. Mr McVeigh said that he | still opposed the hearing of , the bankruptcy petition at , that stage because Mr Rhodes ( was not insolvent. He was in ( a position to pay the debt { and that morning had paid the amount of the debt into I the trust account of his solicitor. Mr Parsons. I If the petition was adjour- 1 ned a motion and affidavit ‘ would be filed to set aside the ' original judgment obtained by ( Mr Vivian. , Mr Blair asked that the petition proceed and that the application to set aside the j judgment be dismissed. He ( said that Mr Rhodes should ( be directed to pay the money i into Court instead of his soli- < citor’s account. His Honour said that he f had not been persuaded to grant Mr McVeigh’s appli- 1 cation for an adjournment i but would stand the matter 1 down until 2.15 p.m. If the | amount claimed had not i

been paid by then the hearing of the petition for bankruptcy would proceed. When the Court resumed after the luncheon break his Honour was informed that the debt had been paid in full, and the petition was struck out. Last week Allan M. Rhodes, Ltd, general traders, was ordered to be wound up by Mr Justice Somers after debts of $146,050 were claimed against the company. Binmasta Disposals ,(1976), Ltd, a company in which Allan Rhodes is the principal shareholder, was wound up yesterday on the petition of the Paparua County Council. Mr B. L. Moore, the county clerk, gave evidence that the company had failed to pay the council $17,821. Judgment for that amount had been obtained against the company on April 2. The debt was for dumping charges atr the councils Carr’s Road dump. Mr T. M. Abbott appeared for the council.: A petition to have another company of Allan Rhodes wound up, Canterbury Auto Wreckers, Ltd, which has a paid-up' capital of $2OOO, was adjdurned for two

weeks to enable an amended petition to be filed. Mr P. M. James, who appeared for the original petitioning creditor, Steel and Tube (New Zealand), Ltd, said that the wrecking com?any had paid the debt of 611 owed to his client. Other organisations which gave notice of intention to support the winding up of Canterbury Auto Wreckers', Ltd, were the Waimairi County Council which claims a debt of $5342 against the company, the Commissioner of Inland Revenue who claims he is owed $10,600, N.Z.I. Finance, Ltd, which claims it is owed $714 and the Chief Postmaster who claims his department is owed $3191. His Honour made an order winding up Christchurch City Finance, Ltd, after Michael Thomas Lonsdale gave evidence that the company had not paid him $7892 which was interest and capital on a loan, of $7OOO. he made to. the company on May 7, 1979.. It was due for repayment on February 8, 1980. -v The Official Assignee (Mr I. A. Hanson) was appointed provisional, liquidator of all companies .which were ordered to be wound up.