The United States Securities and Exchange Commission brought a motion to lift the stay of proceedings under s. 69.4 of the Bankruptcy and Insolvency Act to continue actions enforcing foreign judgments against the bankrupt and the debtor.
The moving party argued the judgments arose from fraud or misappropriation and would survive discharge under s. 178(1).
The respondents opposed, citing a recent US Supreme Court decision and limitation period defences.
The court granted the motion, finding a fair issue to be tried regarding the limitation periods and the nature of the claims, but ordered that no enforcement steps be taken without further leave.