The appellant bank held a mortgage on a condominium owned by the respondent, who defaulted.
After default, the respondent leased the property to another respondent on highly favourable terms.
The bank applied under s. 52 of the Mortgages Act to set aside the tenancy.
The application judge dismissed the application, finding a conflict between s. 52 of the Mortgages Act and the Residential Tenancies Act.
The Court of Appeal allowed the appeal, holding that there is no conflict because setting aside a tenancy agreement under the Mortgages Act means the tenancy never existed, whereas terminating a tenancy under the Residential Tenancies Act brings a valid tenancy to an end.
