The Landlord brought a motion to lift the stay of proceedings under the Bankruptcy and Insolvency Act (BIA) to enforce an eviction order from the Landlord and Tenant Board (LTB) against the bankrupt tenants.
The tenants had accumulated significant rent arrears and had not complied with the LTB order to void the termination of their tenancy, nor had they paid rent post-bankruptcy.
The court found that the bankruptcies were deliberately filed to frustrate the LTB order and that the landlord was materially prejudiced by the continued stay.
The motion was granted, allowing the landlord to obtain possession of the property, and it was clarified that section 84.2 of the BIA did not apply as the termination was not solely due to bankruptcy or pre-bankruptcy non-payment.
