The Receiver brought a motion for an order requiring the debtor and its principal to pay $143,000 to the Receiver.
The funds represented the HST portion of a lease termination settlement paid to the debtor prior to the receivership.
The debtor argued the funds were not 'Property' under the receivership order because they were subject to a statutory deemed trust in favour of the CRA.
The court held that the funds arose from the debtor's real property and fell within the definition of 'Property'.
The court declared the funds must be paid to the Receiver, who would determine priorities in due course.
