Canada Case Law

Fox Island Development Ltd. v. Ching

Court

Supreme Court of British Columbia

Fox Island proved the statutory requirements for a bankruptcy order: an act of bankruptcy was conceded and the petitioner proved indebtedness in excess of $1,000; petitioning creditor was not required to value security held against third‑party corporate debtors; respondent failed to establish that his counterclaims were bona fide and would eliminate the indebtedness to below $1,000; the adjournment and request to cross‑examine were unjustified and the court declined to exercise its discretion to dismiss or stay the petition; accordingly a bankruptcy order was granted against the respondent.

Source excerpt

• Bankruptcy order
• Act of bankruptcy (s.42(1)(j) bia)
• Guarantee liability
• Valuation of third‑party security
• Bona fide dispute and set‑off
• Adjournment and cross‑examination on affidavits

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Sun (Re)

Court

Supreme Court of British Columbia

Adjournment denied because the debtor received substituted service on December 16, filed detailed affidavit disclosing assets and lengthy prior receivership and foreclosure proceedings dating to early 2025, and therefore failed to meet the onus under s.43(11) BIA to show other sufficient reason for a stay; applicants granted leave to set the hearing of the bankruptcy application in chambers with a two-hour estimate.

Source excerpt

• Bankruptcy order
• Adjournment/stay under s.43(11) bia
• Service and substituted service
• Costs
• Receivership proceedings

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Singh (Re)

Court

Supreme Court of British Columbia

The court granted RBC’s bankruptcy petition against Barinderjit Singh and rejected a stay request based on speculative refinancing efforts and insufficient evidence.

• Bankruptcy order
• Stay or dismissal under s.43(7) and s.43(11) bia
• Act of bankruptcy
• Secured creditor enforcement
• Refinancing
• Bankruptcy-order

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Smith (Re)

Court

Supreme Court of British Columbia

The court granted bankruptcy orders against Craig Allen Smith and Robert Kyle Smith, finding they failed to prove they could pay their debts or show other sufficient cause.

• Bankruptcy order
• Ability to pay
• Section 43(7) dismissal
• Section 43(11) stay
• Acts of bankruptcy
• Judgment enforcement

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River Green (Thunder Bay) Inc. (Re)

Court

Court of Appeal for Ontario

The appeal is dismissed because the application judge, exercising his discretion under s.43(7) BIA, reasonably found no credible evidence of an improper purpose or conspiracy by BNL, River Green had committed acts of bankruptcy and could not pay its debts, and there was no palpable and overriding error or error in principle justifying appellate intervention.

Source excerpt

• Bankruptcy order
• Dismissal for sufficient cause s.43(7) bia
• Acts of bankruptcy s.42(1)(j)
• Improper purpose/ulterior motive
• Standard of review on appeal
• Standing of shareholder

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Heliotrope Investment Corporation v. Beach

Court

Court of Appeal for Ontario

The fresh evidence was excluded because it could have been produced with due diligence or lacked evidentiary value; the application judge was entitled to find each appellant owed at least $1,000 and had ceased to meet liabilities; there were no grounds to refuse the bankruptcy order or grant a stay, therefore the appeal was dismissed.

Source excerpt

• Bankruptcy order
• Insolvency
• Fresh evidence on appeal
• Stay
• Costs

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Medcap Real Estate Holdings Inc. (Re)

Court

Court of Appeal for Ontario

The appeal is dismissed because Medcap failed to meet the heavy onus under s.43(7) to show that it could pay its debts or that there was other sufficient cause to refuse a bankruptcy order; payments by or via co‑debtors and piecemeal payments did not establish overall solvency and the judge did not err in concluding bankruptcy could serve the statutory purpose of protecting creditors.

Source excerpt

• Bankruptcy order
• Acts of bankruptcy
• Ability to pay / solvency
• Discretion to dismiss under s.43(7) bia
• Secured vs unsecured creditors

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1449 Sandhurst Place Holdings Ltd. (Re)

Court

Supreme Court of British Columbia

The court granted a bankruptcy order against 1449 Sandhurst Place Holdings Ltd., finding Jeana Ventures Ltd. met the s. 43 BIA requirements despite a shareholder dispute.

• Bankruptcy order
• Acts of bankruptcy
• Priority of claims
• Shareholder disputes
• Standing
• Receiver's sale

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Zanewycz (Re)

Court

Court of Appeal for Ontario

The appeal was dismissed because the bankruptcy judge correctly found the appellant owed debts exceeding $1,000, that he had committed an act of bankruptcy by failing to meet liabilities as they became due within the relevant six‑month period, and that the bankruptcy application was properly issued and served, so no basis existed to overturn the adjudication.

Source excerpt

• Bankruptcy order
• Act of bankruptcy
• Service of process
• Debts and liabilities
• Costs
• Consumer proposal

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Curtis Gordon Quigley (Re)

Court

Supreme Court of British Columbia

The court granted a bankruptcy order against Curtis Gordon Quigley, finding the Bankruptcy and Insolvency Act requirements were met and awarding solicitor-and-client costs.

• Bankruptcy order
• Act of bankruptcy
• Interim receiver
• Annulment of bankruptcy
• Costs
• Bankruptcy-order

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