The appellants filed a Notice of Appeal from an order dismissing their motion to declare an action against them a nullity in bankruptcy proceedings.
They then brought a motion in chambers before the Court of Appeal, arguing that the filing of the Notice of Appeal triggered an automatic stay of the impending trial under s. 195 of the Bankruptcy and Insolvency Act.
The chambers judge first determined she had jurisdiction to decide the applicability of the stay.
On the merits, the judge found that the appellants did not have an appeal as of right under s. 193(a) or (c) because the order appealed from did not involve future rights or property directly exceeding $10,000 in value.
Consequently, the automatic stay under s. 195 did not take effect, and the motion was dismissed.
