10 August 2016

Insolvency: Official Assignee v. Sharma

With Sushil Kumar Sharma’s meat supply company forced into liquidation by Inland Revenue for unpaid taxes and Mr Sharma now bankrupt personally, the Official Assignee took pre-emptive action against his family to freeze assets suspected of being hidden from creditors.
The Official Assignee alleges Mr Sharma unloaded personal assets prior to bankruptcy including $150,000 in gold bars, two motor vehicles and a property at Richardson Road in the Auckland suburb of Mt Roskill.  There was evidence of these assets being transferred in suspicious circustances to his wife Paula Sharma and to trustees of a family trust.  The Official Assignee told the High Court these asset transfers would be challenged as gifts made whilst insolvent.  A freezing order was imposed to prevent Mrs Sharma and the family trust disposing of all assets they currently hold.
Official Assignee v. Sharma & Family Trustee Ltd – High Court (10.08.16)

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