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Court exercises discretion to not order repayment of transfers at undervalue received in good faith.
The Receiver brought a motion seeking a declaration that certain transfers made by the debtor to third-party creditors were transfers at undervalue under section 96 of the Bankruptcy and Insolvency Act, and an order for repayment.
The debtor's principal had breached a preservation order by using a tax refund to pay personal and corporate debts owed to the third parties, who received the funds in good faith without knowledge of the receivership or the court order.
The court found that while the transfers met the criteria for transfers at undervalue, the exceptional circumstances of the case warranted exercising discretion to not require the third parties to repay the funds.
The Receiver's reports and fees were approved.
Motion to quash appeal granted as the underlying order refusing to remove counsel was interlocutory.
The respondents brought a motion to quash the appellant's appeal on the basis that the underlying decision—a refusal to remove opposing counsel and a related refusal to grant an adjournment—was interlocutory.
The Court of Appeal agreed, finding that the refusal to grant an adjournment was intertwined with the interlocutory refusal to remove counsel.
The motion to quash was granted and the cross-motion was dismissed.
