JND Associates (Re), 2009 ONCA 465

CITATION: JND Associates (Re), 2009 ONCA 465

DATE: 20090605

DOCKET: C48236

COURT OF APPEAL FOR ONTARIO

Laskin, Moldaver and MacPherson JJ.A.

BETWEEN:

In the Matter of the Bankruptcy of JND Associates a partnership carrying on business in the Town of Markham, in the Regional Municipality of York, in the Province of Ontario

P.E. Du Vernet, for the appellant JND Associates

Martin R. Kaplan and Myriah Graves, for the respondent Lucas Vets

Heard: June 3, 2009

On appeal from the order of Justice James M. Spence of the Superior Court of Justice dated January 9, 2008.

APPEAL BOOK ENDORSEMENT

[1] The appellant, JND Associates, appeals from the bankruptcy order of Spence J. dated January 9, 2008.

[2] The respondent Lucas Vets is a Belgian diamond merchant who sold diamonds to the appellant. He claimed that the appellant did not pay for some of the diamonds and eventually owed him $212,305.98. The respondent decided to bring a petition for a bankruptcy order.

[3] The bankruptcy judge granted the order under s. 42(1)(j) of the Bankruptcy and Insolvency Act. He found that the appellant had failed to pay its obligations to the applicant “and to some of its other creditors”.

[4] The appellant’s principal ground of appeal is that the bankruptcy judge erred in concluding that the appellant had debts with other creditors.

[5] We disagree. The documentary evidence and the testimony of the appellant’s former bookkeeper entitled the bankruptcy judge to conclude, as he did, that “JND had outstanding and unpaid liabilities to two other suppliers, Blossom Holdings and Sheeprock Diamonds Limited.”

[6] The appeal is dismissed. Costs to the respondent fixed at $7500 inclusive of disbursements and G.S.T.