The court heard competing motions by a court-appointed receiver and a third-party purchaser (BJC) regarding the sale of a commercial property.
The property was subject to a mortgage that fell into default, prompting the mortgagee to exercise its statutory power of sale and enter into an agreement with BJC.
Subsequently, a receiver was appointed over the mortgagor corporation in an oppression action and sought to sell the same property en bloc with another property to a different purchaser.
The court held that the receivership order under the Business Corporations Act and Courts of Justice Act did not suspend or supersede the mortgagee's pre-existing statutory power of sale under the Mortgages Act.
The receiver's motion to approve its sale was dismissed, and the mortgagee was permitted to complete its sale to BJC.
