The appellant bankrupt appealed a decision lifting the automatic stay of proceedings under s. 69.4 of the Bankruptcy and Insolvency Act.
The appellant argued that the applicant creditor was required to establish a prima facie case for the proposed action.
The Court of Appeal dismissed the appeal, holding that there is no requirement to establish a prima facie case under s. 69.4.
Instead, the court must be satisfied that there are sound reasons consistent with the scheme of the Act to relieve against the automatic stay, such as the creditor being materially prejudiced by its continued operation.
