Re Millard
| Jurisdiction | Cayman Islands |
| Judge | (Jones, J.) |
| Judgment Date | 29 November 2013 |
| Court | Grand Court (Cayman Islands) |
| Date | 29 November 2013 |
(Jones, J.)
K. Broadhurst for the agents of the trustee in bankruptcy;
M. Mulligan for the Auditor General;
J.P. Corbett, Q.C. and Ms. R. Hume for the Commonwealth of the Northern Mariana Islands.
(1) Al Sabah, In re, 2004–05 CILR 373, referred to.
(2) Kruger, In re, 1997 CILR 424, referred to.
Bankruptcy Law (1997 Revision), s.5: The relevant terms of this section are set out at para. 4.
s.94: The relevant terms of this section are set out at para. 3.
Public Management and Finance Law (2013 Revision), s.60:
‘(1) The Auditor General shall-
(a) conduct audits of the financial statements-
(i) . . . in respect of the core government and the entire public sector . . .’
Grand Court (Bankruptcy) Rules 1977, r.58: The relevant terms of this rule are set out at para. 3.
r.79: The relevant terms of this rule are set out at para. 3.
Bankruptcy and Insolvency-trustee in bankruptcy-audit of accounts-Grand Court unable to waive Auditor General”s duty to inspect bankruptcy accounts under Bankruptcy Law (1997 Revision), s.94-no power for Auditor General to make charges to estate or audit trustee”s other accounts-court to apply Grand Court (Bankruptcy) Rules even if serves no useful purpose
Bankruptcy and Insolvency-trustee in bankruptcy-audit of accounts-jurisdiction for Auditor General to audit trustee”s accounts under Public Management and Finance Law (2013 Revision), s.60 as trustee public officer attached to Grand Court
Bankruptcy and Insolvency-trustee in bankruptcy-audit of accounts-as Grand Court (Bankruptcy) Rules 1977 modelled on Jamaican law, court to give rules practical application as far as possible when terminology or practice not relevant to Cayman bankruptcy-in lieu of submitting ‘record book’ or ‘cash book’ for audit under r.79, trustee in bankruptcy to submit reports and accounts complying with Companies Winding Up Rules 2008, O.10 to Auditor General by end of January and July each year
The applicants, in their roles as joint agents for the trustee in bankruptcy, applied for directions that the Auditor General was not required to audit the bankruptcy accounts.
The applicants-who were professional insolvency practitioners-were appointed by the Clerk of the Court (in her role as trustee in bankruptcy) as her joint agents. Under the Bankruptcy Law (1997 Revision), s.94, the trustee in bankruptcy was required to submit the bankruptcy accounts for auditing at such times and in such manner as was prescribed. The Grand Court (Bankruptcy) Rules 1977, r.79 stated that the accounts should be submitted during the first week in January and July of each year. The applicants, as the trustee”s agents, brought the present application for directions that the Auditor General was not required to audit the accounts.
The applicants submitted that there was no useful purpose to the accounts being audited as the bankruptcy had been delegated to them as professional insolvency practitioners. The court should therefore-under
the Bankruptcy Law (1997 Revision), s.5, which allowed them to decide any questions of law or fact arising out of the bankruptcy-waive the requirement that the Auditor General audit the accounts.
The Auditor General submitted in reply that the applicants were required to submit their accounts for auditing under the Bankruptcy Law (1997 Revision), s.94 and the court did not have any power under s.5 to relieve either party of these duties. Further, the Public Management and Finance Law (2013 Revision), s.60 gave the Auditor General a duty to audit the annual financial statements of the judicial administration and its officers. As the trustee in...
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