Appeal and cross-appeal arising from a bankruptcy trustee's proof of claim, the chair's rulings at the first meeting of creditors, and subsequent voting at a reconvened second meeting.
The court held that the chair erred in law by entirely preventing a creditor with an objected and allegedly non-arm's length claim from voting, because ss. 108(3) and 109(6) of the Bankruptcy and Insolvency Act require the vote to be taken subject to later invalidation or redetermination.
The court further held that filing the appeal did not automatically stay the effect of the vote or prohibit a second meeting under s. 115.1, but found that the second meeting nevertheless should not have been convened while the first appeal was pending.
The appeal was not moot, the second meeting resolutions were not nullities, and the court confirmed the uncontested resolutions nunc pro tunc while redetermining the contested vote to appoint the appellant trustee's representative as an inspector.
