Nabiel Dawood

The plaintiff claimed ownership of either 50% or 33.3% of a meat retail business (Robert's Boxed Meats) operated through a numbered company.

The plaintiff alleged an oral agreement in 1997 whereby he and the defendant would be equal 50% owners, or alternatively, that share purchase and escrow agreements from 1996-1997 preserved a 33.3% interest in the company held in escrow.

The court found no credible evidence of the alleged oral agreement and determined that the plaintiff's alternative claim for 33.3% ownership was statute-barred under the applicable limitations legislation.

The court granted the defendant's counterclaim for delivery of the escrowed shares for cancellation.

The court was asked to decide between the debtors’ application for protection under the Companies' Creditors Arrangement Act (CCAA) and the Toronto-Dominion Bank’s application for the appointment of a receiver.

After reviewing the facts and arguments, the court concluded that it was most just and convenient to appoint a receiver, dismissing the CCAA application.

The decision reviews the history of the debtors’ restructuring efforts, the positions of the parties, and the legal principles governing the choice between CCAA and receivership, ultimately finding that the interests of the senior secured creditor should prevail in the circumstances.