Joshua Tayar

The Interim Receiver, TDB Restructuring Limited, sought court approval to commence a marketing and sales process for the real properties of Thomas Dylan Suitor, who had been adjudged bankrupt.

The court dismissed the motion, holding that the powers of an interim receiver under section 46 of the Bankruptcy and Insolvency Act are limited to preservation and protection of assets, and do not extend to a full marketing and sale process unless the property is perishable or likely to depreciate rapidly in value.

The court found insufficient evidence that the properties met this threshold and noted that a full receivership under section 243 of the BIA would be required for such powers.

The applicant, a first mortgagee, sought the appointment of a receiver over a property due to mortgage default and unpaid realty taxes.

The registered owner consented, but a respondent claiming fraudulent transfer of title opposed the application and sought an adjournment to investigate.

The court dismissed the adjournment request, finding that the applicant's mortgage was valid under the Land Titles Act, as the mortgagor was the registered owner at the time, and the applicant was an innocent party entitled to rely on the register.

The court granted the application, finding it just and convenient to appoint a receiver given the ongoing default, the Mareva injunction on the mortgagor's assets, and the potential insufficiency of property value to cover debts.

The bankrupt, a former real estate developer, sought an absolute discharge from bankruptcy.

The discharge was opposed by the Trustee, the Canada Revenue Agency, and several creditors, who argued that the bankrupt's assets were less than 50 cents on the dollar for reasons he could be held responsible for, and that he failed to perform his duties under the Bankruptcy and Insolvency Act.

The court found that the bankrupt had engaged in an asset protection strategy, incurred significant personal liabilities without the means to pay them, and failed to disclose his true post-bankruptcy lifestyle and use of a corporate credit card.

The court declined to refuse the discharge entirely but imposed a substantial conditional order requiring the bankrupt to pay $960,000 and fulfill various outstanding duties.

The creditor brought a motion for security for costs against the bankrupt in response to the bankrupt's motion to expunge the creditor's proof of claim.

The creditor argued that the bankrupt's expungement motion was frivolous and vexatious under Rule 56.01(1)(e) of the Rules of Civil Procedure.

The court reviewed the evidence, including allegations of breach of trust under the Construction Act, and found that the creditor failed to meet the high standard required to prove the expungement motion was devoid of merit or had virtually no chance of succeeding.

Applying a holistic approach, the court dismissed the motion for security for costs.