In re Bozanich / A.H. Boulton Co. Ltd. v. Trusts and Guarantee Co. Ltd.

In re Bozanich / A.H. Boulton Co. Ltd. v. Trusts and Guarantee Co. Ltd.

The chattel mortgage was an ordinary commercial transaction to secure indebtedness and not a "settlement" within the meaning of ss.60 and 62(3) of the Bankruptcy Act; s.62(3) does not broaden "settlement" to encompass all conveyances or transfers when read in context and in light of English authorities, and such creditor transactions are to be assessed under s.64 (preferences); consequently the mortgage is valid and effective against the trustee and provincial preference legislation is suspended by s.91 of the B.N.A. Act.

Citation
[1942] SCR 130
Parties
Defendant/appellant: A.H. Boulton Company Limited; Plaintiff/respondent: The Trusts and Guarantee Company Limited; Debtor: George Bozanich
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
3 March 1942
Procedural Posture
Bankruptcy / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario
Outcome
Appeal allowed; report of the County Court Judge restored; chattel mortgage held valid and effectual as against the trustee.
Legal Topics
Settlement, Preferences, Chattel Mortgage, Secured Creditor, Interpretation of Bankruptcy Act, Provincial Legislation Supersession
Source Language
English
Bankruptcy and Insolvency Constitutional Law Settlement Preferences Chattel Mortgage Secured Creditor Interpretation of Bankruptcy Act Provincial Legislation Supersession

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

A.H. Boulton Company Limited

Defendant/appellant

The Trusts and Guarantee Company Limited

Plaintiff/respondent

George Bozanich

Debtor

Procedural Posture

Bankruptcy / Appeal to the Supreme Court of Canada From the Court of Appeal for Ontario

Legal Issues

  1. 1 Whether a chattel mortgage given to a creditor is a "settlement" within ss.60 and 62(3) of the Bankruptcy Act and therefore void against the trustee
  2. 2 Whether s.62(3)'s definition expands "settlement" to include all conveyances or transfers
  3. 3 Whether the transaction falls to be tested under s.64 as a preference

Ratio Decidendi

The chattel mortgage was an ordinary commercial transaction to secure indebtedness and not a "settlement" within the meaning of ss.60 and 62(3) of the Bankruptcy Act; s.62(3) does not broaden "settlement" to encompass all conveyances or transfers when read in context and in light of English authorities, and such creditor transactions are to be assessed under s.64 (preferences); consequently the mortgage is valid and effective against the trustee and provincial preference legislation is suspended by s.91 of the B.N.A. Act.

Court Disposition

Appeal allowed; report of the County Court Judge restored; chattel mortgage held valid and effectual as against the trustee.

Orders

  • Appeal allowed; report of His Honour Judge Coughlin restored with costs throughout.