Court File and Parties
COURT FILE NO.: CV-17-586381
DATE: 2018/08/23
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
Royal Bank of Canada
Plaintiff
- and –
Versatile Holdings Inc., Sardar Samiuddin Khan, also known as Sardar M Khan Samiuddin, Nida Shahid and Shahid Saleem Khawaja
Defendant
Counsel:
Rachel Moses for the Plaintiff
Adrienne L. Boudreau and Daniel Hamson for the Defendants
HEARD: August 13, 2018
REASONS FOR DECISION
PERELL, J.
[1] The Royal Bank of Canada (“RBC”) made a business loan to Versatile Holdings Inc., which operated a restaurant as a franchisee of Paramount Fine Foods at 85 Front Street East in Toronto, Ontario. Sardar Samiuddin Khan, Nida Shadid, and Shadid Saleem Khawaja signed guarantees. After more than a year of unsuccessful operations, Versatile Holdings surrendered the restaurant to the franchisor, and Versatile Holdings sought to rescind the franchise pursuant to the Arthur Wishart (Franchise Disclosure), 2000[^1]. With the cessation of restaurant operations, RBC called the business loan, but it was not repaid. RBC nows moves for a summary judgment against Versatile Holdings and the guarantors.
[2] Save for the amounts in issue and a variation in the parties, the facts and the circumstances of the immediate case are the same as in a companion summary judgment motion in an action brought by the RBC against Everest Group Inc., which operated another franchise of Paramount Fine Foods at Yorkdale Mall in Toronto. Mr. Khawaja is a party to both actions.
[3] The summary judgment motions were argued together, and the factums and arguments in both actions were virtually identical. The parties agreed that the outcome of the motions should be the same.
[4] In the Everest Group action, I granted RBC a summary judgment. See Royal Bank of Canada v. Everest Group Inc., 2018 ONSC 4973.
[5] For the reasons set out in Royal Bank of Canada v. Everest Group Inc., I come to the same conclusions in the immediate case.
[6] I grant the RBC judgment against Versatile Holdings for the indebtedness owed under the loan agreements and against the guarantees to the limits of their guarantees plus costs on a full indemnity basis of $31,408.74.
[7] The loan indebtedness as of August 23, 2018 is: (a) $304,080.76 for the CSBFL loan; (b) $171,390.08 for the variable rate term facility; (c) $4,659.22 for the overdraft facility; and (d) $11,208.51 for the Visa facility.
Perell, J.
Released: August 23, 2018
COURT FILE NO.: CV-17-586381
DATE: 2018/08/23
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
Royal Bank of Canada
Plaintiff
- and -
Versatile Holdings Inc., Sardar Samiuddin Khan also known as Sardar M. Khan Samiuddin, Nida Shahid, and Shahid Saleem Khawaja
Defendants
REASONS FOR DECISION
PERELL J.
Released: August 23, 2018
[^1]: S.O. 2000, c. 3.