Licence Tribunal
Appeal d'appel en
Tribunal matière de permis
DATE:
2014-11-28
FILE:
9034/TIA
CASE NAME:
9034 v. Registrar, Travel Industry Act, 2002
An Appeal from a Notice of Proposal by the Registrar, Travel Industry Act, 2002, S.O. 2002, c. 30, Sch. D – to Revoke Registration
Maryam Travel Inc.
Appellant
-and-
Registrar, Travel Industry Act, 2002
Respondent
ORDER
ADJUDICATOR:
Jacqueline Castel, Member
APPEARANCES:
For the Appellant:
Abrar Ahmed, Agent
For the Respondent:
Soussanna Karas, Counsel
Heard by teleconference:
November 20, 2014
ORDER
This is a hearing before the Licence Appeal Tribunal (the “Tribunal”) arising out of a Notice of Proposal issued by the Registrar, Travel Industry Act, 2002, (the “Registrar” and the “Act” respectively.) The Notice of Proposal dated June 18, 2014, proposed to revoke the registration of Maryam Travel Inc. (the “Appellant”), as a travel agent under the Act.
At the commencement of the hearing, Counsel for the Registrar, advised the Tribunal that the parties had reached a settlement, attached hereto as Schedule “A’, which they wish to have incorporated into and made part of this order.
Further, Ms. Karas had given notice to the Appellant and to the Tribunal that the Registrar would be seeking costs of the proceeding, pursuant to the Tribunal’s Rules of Practice. Ms. Karas submitted that the Appellant had acted unreasonably and in bad faith during the time preceding this hearing. The Tribunal finds that the Appellant failed to attend the pre-hearing on October 1, 2014, having received both written and verbal notice of said pre-hearing, and failed to comply with paragraph 3 of the pre-hearing order dated October 3, 2014, specifically, by the Appellant failed to notify the Tribunal and the Registrar, in writing, of the name and title of its representative by October 14, 2014.
The Tribunal finds that said conduct does, pursuant to Rule 14 of the Rules of Practice, constitute unreasonable frivolous and vexatious conduct and warrants a cost order.
THEREFORE, having heard the submissions of the parties and having reviewed the Minutes of Settlement filed, the Tribunal makes the following order.
The proceedings in this matter are concluded on the basis of the terms set out in the said Schedule “A”, which are incorporated into and made part of this Order.
The Appellant is to pay the Registrar costs in the amount of $500 within 30 days of this Order.
LICENCE APPEAL TRIBUNAL
Jacqueline Castel, Member
Released: November 28, 2014
SCHEDULE "A"
Licence Appeal Tribunal
MARYAM TRAVEL INC.
Applicant
AND
REGISTRAR, TRAVEL INDUSTRY ACT, 2002
Respondent
MINUTES OF SETTLEMENT
WHEREAS Maryam Travel Inc. located at 170 Willowdale Ave., Toronto, ON M2N 4Y6, is a travel agent (Registration No. 50020479) registered on December 21, 2012, under the Travel Industry Act, 2002 ("the Act") and Ontario Regulation 26/05 made under the Act (the “Regulation”);
AND WHEREAS the Registrar issued the Notice of Proposal to Revoke Registration of Maryam Travel Inc. on June 18, 2014 (“NOP”), for the reason Maryam Travel Inc. is and has been carrying on activities that are in contravention of the Act and the Regulation;
AND WHEREAS the Registrar issued the Notice of Further and Other Particulars on October 14, 2014 as further evidence of the Registrant’s non-compliance with the Act and the Regulation came to light (“NOFP”).
AND WHEREAS Maryam Travel Inc. appealed the NOP to the Licence Appeal Tribunal;
AND WHEREAS the NOP and the NOFP were issued for a failure of Maryam Travel Inc. to file financial statements for the year ending December 31, 2013, for failure to maintain minimum working capital, comply with trust accounting, failure to file Form 1 contribution, failure to advise of change in control and failure to respond to TICO’s correspondence.
AND WHEREAS the parties agreed to settle all of the issues outstanding in the appeal on the following terms and conditions:
The parties consent to an Order of the Licence Appeal Tribunal incorporating the terms of these Minutes of Settlement and disposing of these proceedings without a hearing.
The Registrant must maintain its trust account in accordance with the Act and the Regulation and Trust Accounting Guidelines (available on TICO website: www.tico.ca).
The Registrant shall submit to TICO its monthly trust reconciliation (a reconciliation showing total outstanding receipts from customers for the related travel services compared to trust funds held in the Trust Account) for the months of October through to and including December 2014, or until such other time as the Registrar indicates. The Trust Reconciliations shall comply with the following requirements:
a. Each Trust Reconciliation is to be submitted within 30 days from the end of the each month. For example, the Trust Reconciliation for October 2014 is due November 30, 2014;
b. Each Trust Reconciliation shall include a list of consumer deposits on hand and a listing by customer name/Invoice #, date paid and amount related to any partial supplier payment related to the moneys received form consumers, if applicable
c. The Trust Reconciliation shall include a copy of the Travel Industry Act Trust bank account statement for the particular month.
The Registrant shall file any and all annual financial statements for each fiscal year prepared by a public accountant licensed under the Public Accountancy Act, 2004 and accompanied by a Review Engagement Report or an Audit Opinion as required by the Regulation within 3 months after the end of the fiscal year.
Each and every annual financial statement filed with TICO shall disclose the trust position at the end of the year. The statement with respect to the trust position shall include the balance in the Travel Industry Act Trust Account at the year end, customer deposits, plus any other balances that are included in the trust position. If the customer deposits are nil at the year end, then it must be stated as such.
The Registrant shall respond to TICO inquiries and requests as soon as possible but not later than within 5 business days.
The Registrant shall advise TICO of changes outlined in sections 16 and 17 of the Regulation within the time prescribed in those sections.
Given Mr. Ahmed Abrar’s past conduct and his credit rating, the Registrant must ensure that Mr. Abrar is not to assume a position of the Officer or Director of the Registrant and is not to act in a de facto capacity of the Officer or Director of the Registrant. Similarly, Mr. Abrar shall not be a signatory on any of the bank accounts of the Registrant.
The Registrant shall, at all times, maintain the minimum working capital as required by section 24 of the Regulation. If based on the financial statements submitted by the Registrant, the Registrar concludes that the working capital of the Registrant is not in compliance with s. 24 of the Regulation, the Registrant shall take the necessary steps to correct its working capital position and submit proof thereof within 30 days from the request by the Registrar.
Maryam Travel Inc. and the undersigned, acknowledge that we have read, understand and will comply with the terms of these Minutes of Settlement.
Maryam Travel Inc. further acknowledges that it has obtained or has had full opportunity to obtain independent legal advice with respect to the terms of these Minutes of Settlement and their legal effect and impact and further undertakes to comply with them.
SIGNED THIS DAY OF , 2014
Ms. Maryam Rezaee, Director
Mr. Michael Pepper
Maryam Travel Inc.
I have the authority to bind the corporation
Registrar, Travel Industry Act, 2002