Bevin (Re)

Bevin (Re)

The court found that the Bank effectively requested a creditors' meeting by its voting letter and related communications despite the defective checkbox, that the Administrator represented a meeting would be called, and that s.187(9) BIA permits the court to remedy the formal defect without substantial injustice; accordingly the deemed acceptance was annulled and the Administrator ordered to call a creditors' meeting under s.66.15 BIA.

Citation
2014 NSSC 88
Parties
Bankrupt/proponent: Lisa Dawn Bevin; Creditor: Bank of Nova Scotia; Proposal Administrator/trustee: Grant Thornton Limited
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
5 March 2014
Procedural Posture
Consumer Proposal Under the Bankruptcy and Insolvency Act / Application to Court to Annul Deemed Acceptance and Direct Trustee to Call a Creditors' Meeting
Outcome
Deemed acceptance of the consumer proposal annulled; Administrator directed to call a creditors' meeting under the BIA; no costs awarded
Legal Topics
Consumer Proposal, Deemed Acceptance, Creditor Meeting, Formal Defects and Irregularities, Estoppel, Remedial Powers Under S.187(9) BIA
Source Language
English
Bankruptcy and Insolvency Equity Civil Procedure Consumer Proposal Deemed Acceptance Creditor Meeting Formal Defects and Irregularities Estoppel +1 more

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Parties

Lisa Dawn Bevin

Bankrupt/proponent

Bank of Nova Scotia

Creditor

Grant Thornton Limited

Proposal Administrator/trustee

Procedural Posture

Consumer Proposal Under the Bankruptcy and Insolvency Act / Application to Court to Annul Deemed Acceptance and Direct Trustee to Call a Creditors' Meeting

Legal Issues

  1. 1 Whether a creditor's informal communication and defective voting form amounted to a valid request for a creditors' meeting under s.66.15(2) BIA
  2. 2 Whether the administrator was estopped from denying its representation that a meeting would be called
  3. 3 Whether the court may remedy the formal defect and annul the deemed acceptance under s.187(9) BIA

Ratio Decidendi

The court found that the Bank effectively requested a creditors' meeting by its voting letter and related communications despite the defective checkbox, that the Administrator represented a meeting would be called, and that s.187(9) BIA permits the court to remedy the formal defect without substantial injustice; accordingly the deemed acceptance was annulled and the Administrator ordered to call a creditors' meeting under s.66.15 BIA.

Court Disposition

Deemed acceptance of the consumer proposal annulled; Administrator directed to call a creditors' meeting under the BIA; no costs awarded

Orders

  • Annul the deemed acceptance of the consumer proposal
  • Direct the Administrator to call a meeting of creditors to be conducted according to the Bankruptcy and Insolvency Act beginning with s.66.15