As a bankrupt, Cheryl Sitara Singh no longer controls her assets and cannot direct Insolvency Service as to how and when these assets can be sold, the High Court ruled.
Ms Singh was forced into bankruptcy in July 2019 by the body corporate of Richmond Terraces, a thirty-apartment complex in Flat Bush, south Auckland. It was a leaky building. She had refused to pay levies imposed for remedial work. Insolvency Service identified debts of some $374,000; unpaid levies plus legal costs resulting from a series of unsuccessful court cases challenging the levies and against both the body corporate and its members. Ms Singh owned two properties: her apartment at Richmond Terraces and a second apartment at Avenue Road in Otahuhu.
She challenged attempts by Insolvency Service to sell Avenue Road during Auckland’s covid-19 pandemic restrictions. The property was passed in at auction; the highest bid was $47,000 short of reserve. Ms Singh’s claim to have a buyer willing to pay a price close to reserve came to nothing. This potential buyer said he was no longer interested when contacted by Insolvency Service. A buyer has since been found, Insolvency Service told the court. The net return on settlement will not be enough to clear Ms Singh’s bankruptcy debts. Sale of Richmond Terrace is next. It has potential net equity of about $265,000 after payment of a mortgage debt and sale expenses.
Ms Singh’s persistent and repetitive attempts to frustrate Insolvency Service’s sale of assets is raising bankruptcy costs, Justice Moore said. He refused Ms Singh’s request for a court order blocking any sale. To regain control of her assets she must apply for annulment of her 2019 bankruptcy, he said.
Singh v. Officlal Assignee – High Court (11.08.20)
20.137