A Bankruptcy Summons by Leading Edge Project Management Ltd (in Voluntary Liquidation) Against Liam Campion of Carrowreagh, Borris-in-Ossory, County Laois, and Bearing Date of 7th March, 2023

• Jurisdiction: Ireland
• Judge: Mr Justice Mark Sanfey
• Judgment Date: 20 July 2023
• Neutral Citation: [2023] IEHC 435
• Court: High Court
• Docket Number: Bankruptcy No. 5212P

In the Matter of a Bankruptcy Summons by Leading Edge Project Management Limited (In Voluntary Liquidation) Against Liam Campion of Carrowreagh, Borris-in-Ossory, County Laois, and Bearing Date of 7th March, 2023

[2023] IEHC 435

Bankruptcy No. 5212P

THE HIGH COURT

BANKRUPTCY

JUDGMENT of Mr Justice Mark Sanfey delivered on the 20 ^th day of July 2023 .

Introduction

1 . This judgment concerns an important procedural issue which arises frequently in bankruptcy matters: whether the court has jurisdiction to extend the time within which an application may be made pursuant to s. 8 (5) of the Bankruptcy Acts, 1988 to 2015 (collectively referred to as “ the Act”). If the court decides that it has such jurisdiction, the issue arises as to how the jurisdiction should be exercised generally, and in the circumstances of the present case.

2 . The application of Liam Campion (“ the debtor”) to dismiss a bankruptcy summons against him issued on 19 February, 2023. Affidavits between the debtor and the alleged creditor were exchanged, and both sides proffered detailed written submissions in advance of the application before this court, which was heard on 10 July, 2023.

The facts

3 . The facts leading to the present application may be summarised as follows:

• • Leading Edge Project Management Ltd (“ the creditor” or “ the company”) obtained a decree from the Circuit Court (Dublin Circuit Court) against the debtor on 1 December, 2008 in the sum of €30,500;

• • The creditor ultimately was placed in voluntary liquidation, and was represented in the present application by the liquidator, John Healy;

• • On 7 March, 2022, an order was made by this court (O'Moore J.) granting the company leave to issue a bankruptcy summons, which duly issued on that date;

• • The time for a service of the bankruptcy summons was extended by the court on 16 May, 2022, and a summons was served on 18 May, 2022;

• • The debtor did not within fourteen days after service pay the sum referred to in the summons, or secure or compound for it to the satisfaction of the creditor;

• • The creditor presented a petition in bankruptcy against the debtor on 29 August, 2022, which was listed for hearing before the court on 17 October, 2022;

• • The debtor served a “notice of application to dismiss bankruptcy summons” in accordance with O.76 r.15 of the Rules of the Superior Courts (“ the Rules”) on 10 February, 2023, together with an affidavit by the debtor of that date, which stated as follows:

  • “1. I am not indebted to the said Leading Edge Project Management Ltd (in Voluntary Liquidation) (hereinafter “ the Petitioner”) in any sum amounting to more than €20,000.

  • 2. While I am conscious of the need to avoid legal submission on affidavit, with regard to the Judgment on 1 December, 2008 in proceedings bearing title and record number The Circuit Court (Dublin Circuit) Record Number 2007/07488 between Leading Edge Project Management Limited, plaintiff and Liam Campion, defendant, whereupon the Petitioner asserts your Deponent is presently indebted to it in the sum of €30,5000 [sic] and on foot of which claimed sum the bankruptcy summons herein was issued, I say and am advised that the Bankruptcy Summons issued herein should be dismissed pursuant to s. 8(6) of the Bankruptcy Act, 1988 on the basis that the said judgment is more than 12 years old and the issuing of the summons herein is in contravention of s. 11(6)(a) of the Statute of Limitations Act, 1957.”

• • There followed an exchange of affidavits between the debtor and Mr. Healy in relation to certain issues arising from communications between them in relation to the judgment and the debt allegedly owed.

4 . The petition and the present application were listed together in the regular Monday Bankruptcy List. Ultimately, it was agreed that the present application should be heard, and both sides filed written submissions in advance of the hearing.

The statutory background

5 . Provision is made in the Act for an act of bankruptcy based on a failure to respond to a bankruptcy summons in s. 7 of the Act as follows:

“7.—(1) An individual (in this Act called a “debtor”) commits an act of bankruptcy in each of the following cases—

…

(g) if the creditor presenting a petition has served upon the debtor in the prescribed manner a bankruptcy summons, and he does not within fourteen days after service of the summons pay the sum referred to in the summons or secure or compound for it to the satisfaction of the creditor.”

6 . Section 8 of the Act deals, inter alia, with the circumstances in which a debtor may apply to the court to dismiss a summons:

“8.—(5) A debtor served with a bankruptcy summons may apply to the Court in the prescribed manner and within the prescribed time to dismiss the summons.

(6) The Court—

( a) may dismiss the summons with or without costs, and

( b) shall dismiss the summons if satisfied that an issue would arise for trial.

7 . The rules governing bankruptcy procedure are set out at O.76 of the Rules of the Superior Courts. They include the following provisions which are of relevance to the present application:

“13 (2) There shall be endorsed on the summons in addition to an intimation of the consequences of neglect to comply with the requisition of the summons, a notice to the debtor that if he disputes the debt and desires to obtain the dismissal of the summons he must file an affidavit within fourteen days after service of the summons stating (a) that he is not so indebted or only so indebted to an amount of €20,000 or less or (b) that before the service of the summons he had obtained the protection of the Court or (c) that he has secured or compounded the debt to the satisfaction of the creditor.

…

15. The affidavit mentioned in sub-rule (2) of rule 13 shall be in the Form No. 6. Where a debtor files such affidavit, the time shall be fixed by the proper officer at which the application for the dismissal of the summons will be heard by the Court. Notice thereof in the Form No 7 shall be given and the affidavit served by the debtor, not less than four days before the date so fixed, by service of the notice and the affidavit on the solicitor for the summoning creditor at his registered place of business or, if no solicitor is employed, by service on the summoning creditor at his address for service. In default of the debtor giving notice or in default of his appearance before the Court at the time fixed his application shall be dismissed.”

The debtor's position

8 . It is clear from the foregoing provisions that...