In a receivership proceeding, the court considered a motion by a court-appointed receiver seeking a contempt finding against an individual who had taken possession of gold bars purchased by the debtor companies shortly before the receivership.
The receiver alleged that the respondent failed to comply with court orders requiring delivery of the precious metals and disclosure of information about their whereabouts.
Applying the three-part test for civil contempt, the court found beyond a reasonable doubt that the respondent knowingly breached both orders by failing to return at least some of the gold bars under his control and by withholding contact information for individuals involved in their distribution.
The court emphasized that contempt proceedings serve both punitive and coercive purposes to uphold the rule of law and enforce compliance with court orders.
The respondent was sentenced to six months’ imprisonment in Canada unless he purged his contempt within seven days by delivering available gold bars and providing the required information.