Exchequer Court Act

An Act respecting the Exchequer Court of Canada [Repealed, R.S.C. 1970, c. 10 (2nd Supp.), s. 64] Jurisdiction of Court as to railway debts The Exchequer Court has jurisdiction with respect to any railway, or section of a railway, not wholly within one province, and with respect to any railway otherwise subject to the legislative authority of the Parliament of Canada, to order and decree, in such manner as it may prescribe, the sale of such railway or section of railway, and of all the rolling stock, equipment and other accessories thereof, at the instance of the Minister of Transport or at the instance of any creditor of any person or company owning or operating such railway or section, where such company has become insolvent or has for more than thirty days failed to efficiently continue the working or operating of the railway or section, or any part thereof, or has become unable to do so, at the instance of a creditor of such person or company having a first lien or charge upon the railway or section, or at the instance of a holder of a first mortgage of such railway or section, or the foreclosure, at the instance of a mortgagee of such railway or section, of the interest of the person or company owning or entitled to the railway or section, with the rolling stock, equipment and other accessories thereof, or the equity of redemption therein, whenever in like circumstances of default the High Court of Justice in England can so order or decree with respect to mortgaged lands situated in England. Mortgages under Canada Transportation Act Nothing in this section in any way affects the power of a company to secure its bonds, debentures or other securities by a mortgage on its property, assets, rents and revenues, or with respect to the powers, privileges, preferences, priorities and restrictions otherwise authorized to be granted or imposed on the holders of those bonds, debentures or other securities. Powers of Court as to appointment of receiver The Court, in any of the cases mentioned in this section, has all the powers for the appointment of a receiver either before or after default, the interim preservation of the property, the delivery of possession, the making of all necessary inquiries, the taking of accounts, the settling and determining of claims and priorities of creditors, the taxation and payment of costs, and generally the taking and directing of all such proceedings requisite and necessary to enforce its order or decree and render it effective, as in mortgage actions the High Court of Justice in England, or any division, judge or officer thereof, may exercise. Duties of receiver A receiver appointed pursuant to subsection (3) shall take possession of such railway, or of such section, and of all the railway stock, equipment and other accessories thereof, and shall, under the direction of the Court, carry on the working and operating of the railway or section or any part thereof, and shall keep and maintain the road, rolling stock, equipment and other accessories thereof in good condition, and renew the same or any part thereof, and, generally shall do all acts necessary for the preservation, working, maintenance, administration and operation of the railway or section, and shall, in the name of the company, institute or defend any suits or actions on its behalf. Direction to complete railway The receiver may also, if the Court, either upon his appointment or subsequently, so directs, do all acts necessary for the completion of the construction or equipment of the railway or section. Remuneration of receiver The remuneration of the receiver shall be fixed by the Court, and the remuneration so fixed, together with the expenses lawfully incurred by him as receiver, including the expenses of working, operation, maintenance, renewal and completion, and of the institution and defence of actions, is a debt of the company and the first charge upon the railway or section, and upon the rolling stock, equipment, accessories and earnings thereof. Insolvent railway company A railway company is insolvent within the meaning of section 26, if it is unable to pay its debts as they become due, if it calls a meeting of its creditors for the purpose of compounding with them, if it exhibits a statement showing its inability to meet its liabilities, if it has otherwise acknowledged its insolvency, if it assigns, removes or disposes of, or attempts or is about to assign, remove or dispose of, any of its property, with intent to defraud, defeat or delay its creditors, or any of them, if, with such intent, it has procured its money, goods, chattels, lands or property to be seized, levied on or taken under or by any process or execution, if it has made any general conveyance or assignment of its property for the benefit of its creditors or if, being unable to meet its liabilities in full, it makes any sale or conveyance of the whole or the main part of its stock in trade or assets, without the consent of its creditors or without satisfying their claims, except that the taking possession of any railway or section thereof by trustees for bondholders by virtue of the powers contained in any mortgage deed made to secure the bondholders is not deemed to be a general conveyance, assignment, sale or conveyance within the meaning of this paragraph, or if it permits any execution issued against it, under which any of its goods, chattels, land or property, is seized, levied upon or taken in execution, to remain unsatisfied till within four days of the time fixed by the sheriff or proper officer for the sale thereof, or for fifteen days after such seizure. Company’s inability to pay debts A company is deemed unable to pay its debts as they become due, whenever a creditor, to whom the company is indebted in a sum exceeding two hundred dollars then due, has served on the company, in the manner in which process may legally be served on it in the place where service is made, a demand in writing, requiring the company to pay the sum so due, and the company has, for fifteen days next succeeding the service of the demand, neglected to pay such sum, or to secure or compound for the same to the satisfaction of the creditor. Concurrent jurisdiction of provincial courts Nothing in section 26 or 27 affects the present jurisdiction of any court of a province in any such matters as aforesaid affecting railways, or sections thereof, wholly within the province, and the superior courts of a province now possessing such jurisdiction shall continue with respect to such railways and sections of railways to have concurrent jurisdiction with the Federal Court in all matters within the purview of this Act. [Repealed, R.S.C. 1970, c. 10 (2nd Supp.), s. 64]