The moving defendant sought a stay of the action on the basis that the plaintiff, a foreign corporation registered in India, was carrying on business in Ontario without a license required by the Extra-Provincial Corporations Act (EPCA).
The court found that the plaintiff exercised sufficient control over the defendant such that the defendant acted as its agent, and therefore the plaintiff was carrying on business in Ontario within the meaning of the EPCA.
The court ordered the action stayed until the plaintiff obtained the required license.