The applicant, a mortgagee under a matured and defaulted Vendor Take Back mortgage, applied for the appointment of a court-appointed receiver over a commercial property in Ottawa.
The respondent mortgagor opposed the application, disputing the validity and amount of the debt in separate ongoing proceedings in Toronto.
The court dismissed the application, finding no evidence of insolvency to engage the Bankruptcy and Insolvency Act and no underlying proceeding to support an interlocutory receivership under the Courts of Justice Act.
Additionally, the court noted that receivership is an extraordinary remedy, the mortgage lacked a contractual receivership clause, and there was sufficient equity in the property to protect the debt.
