Sangha (Re)

Sangha (Re)

The court ordered that the bankruptcy administration and most appeals proceed without being stayed; however, the appeals by the Grewal Parties and the Garcha Parties shall be heard contemporaneously with the trials of their respective civil actions under the Supreme Court Civil Rules so that equitable issues (eg, constructive trust) can be determined in the appropriate forum while avoiding a total halt to estate administration.

Citation
2018 BCSC 137
Parties
Appellant/investor (grewal Parties): Jasprit Grewal; Appellant/investor (grewal Parties): Jaswinder Grewal; Appellant/investor (grewal Parties): Daljit Mattu; Appellant/investor (grewal Parties): Gurdip Mattu; Appellant/investor (garcha Parties): Daljit Garcha; Appellant/investor (garcha Parties): Jaswinder Garcha; Trustee: Crowe MacKay & Company Ltd.; Bankrupt/defendant: Jaswant Singh Sangha; Bankrupt/corporate Defendant: Panorama Parkview Homes Ltd.; Bankrupt/corporate Defendant: 690174 B.C. Ltd.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
29 January 2018
Procedural Posture
Bankruptcy and Insolvency; Related Civil Actions / Application Regarding Timing and Coordination of Appeals and Civil Trials (directions)
Outcome
Application granted in part: appeals other than those of the Grewal and Garcha Parties proceed; Grewal and Garcha appeals to be heard contemporaneously with their civil trials; no stay of overall bankruptcy administration; no costs awarded.
Legal Topics
Constructive Trust, Notice of Disallowance, Priority of Claims, Lifting of Stay Under BIA S.69.1, Contemporaneous Hearing of Appeals and Civil Trials
Source Language
English
Bankruptcy and Insolvency Equity/trusts Civil Procedure Constructive Trust Notice of Disallowance Priority of Claims Lifting of Stay Under BIA S.69.1 Contemporaneous Hearing of Appeals and Civil Trials

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Parties

Jasprit Grewal

Appellant/investor (grewal Parties)

Jaswinder Grewal

Appellant/investor (grewal Parties)

Daljit Mattu

Appellant/investor (grewal Parties)

Gurdip Mattu

Appellant/investor (grewal Parties)

Daljit Garcha

Appellant/investor (garcha Parties)

Jaswinder Garcha

Appellant/investor (garcha Parties)

Crowe MacKay & Company Ltd.

Trustee

Jaswant Singh Sangha

Bankrupt/defendant

Panorama Parkview Homes Ltd.

Bankrupt/corporate Defendant

690174 B.C. Ltd.

Bankrupt/corporate Defendant

Procedural Posture

Bankruptcy and Insolvency; Related Civil Actions / Application Regarding Timing and Coordination of Appeals and Civil Trials (directions)

Legal Issues

  1. 1 Whether the Grewal and Garcha claims are equity claims ranking after unsecured creditors
  2. 2 Whether appeals from Notices of Disallowance should be adjourned pending resolution of related civil actions
  3. 3 Whether administration of the bankruptcy estates should be delayed to await civil litigation

Ratio Decidendi

The court ordered that the bankruptcy administration and most appeals proceed without being stayed; however, the appeals by the Grewal Parties and the Garcha Parties shall be heard contemporaneously with the trials of their respective civil actions under the Supreme Court Civil Rules so that equitable issues (eg, constructive trust) can be determined in the appropriate forum while avoiding a total halt to estate administration.

Court Disposition

Application granted in part: appeals other than those of the Grewal and Garcha Parties proceed; Grewal and Garcha appeals to be heard contemporaneously with their civil trials; no stay of overall bankruptcy administration; no costs awarded.

Orders

  • Appeals other than those of the Grewal and Garcha Parties to proceed under the BIA process
  • The Grewal appeals to be heard at the same time as the Grewal Action trial and governed by the Supreme Court Civil Rules