The Royal Bank of Canada applied for a bankruptcy order against Nuvoola Inc., which the debtor opposed primarily on jurisdictional grounds, arguing its head office had moved to Quebec.
The court analyzed the definition of the "locality of the debtor" under the Bankruptcy and Insolvency Act, finding that the debtor's president, accounting records, and banking activities were centered in Ottawa, and that the debtor had agreed to Ontario jurisdiction in its commitment letters.
The court also determined that the debtor had committed an act of bankruptcy by failing to meet its liabilities generally as they became due.
Consequently, the court granted the application and issued the bankruptcy order, appointing MNP Inc. as the Licensed Insolvency Trustee.
