High Court makes an order extending a bankruptcy, on the grounds that there had been a failure to cooperate with the Official Assignee in the realisation of certain assets, and the bankrupt’s responses on two issues concerning assets do not constitute anything like adequate disclosure.
High Court - bankruptcy - application by Official Assignee in Bankruptcy for an order extending the bankruptcy of the bankrupt pursuant to section 85A(4) of the Bankruptcy Act 1988 as amended on the basis that he had failed to cooperate in the realisation of his assets or had failed to disclose income or assets which could be realised for the benefit of the creditors of the bankrupt - bankrupt issued a motion seeking discovery in respect of correspondence relating to in-camera documents which the bankrupt alleged were exhibited by the OA in his grounding affidavit - bankrupt had been adjudicated bankrupt by order of the High Court in November 2021 - legal principles - bankrupt had a duty to proactively disclose relevant information - need to protect the integrity of the bankruptcy process by means of sanctions had been emphasised repeatedly in the case law - OA asserted a failure on the part of the bankrupt to cooperate in relation to the realisation of any interest the bankrupt may have had in a property located in Thailand - case law clear that the OA did not have to establish a certainty that the bankrupt did have such an interest - bankrupt's performance of his duty was unacceptable - accounts of his dealings with the property were completely contradictory - failure to advance adequate explanation - conduct of bankrupt assessed in the round - bankrupt's non-cooperation and lack of disclosure were serious but were not regarded as being on the upper end of the eight-year spectrum - extension ordered - extension of bankruptcy to a mid-point of the maximum 7-year extension permitted under statute - bankrupt's application dismissed - OA awarded costs of application in the bankruptcy - no order as to costs in relation to bankrupt's application