Respondent Superintendent-of-Bankruptcy

Transcription

Court File No. 35696
IN THE SUPREME COURT OF CANADA
(ON APPEAL FROM THE ONTARIO COURT OF APPEAL)
BETWEEN:
407 ETR CONCESSION COMPANY LIMITED
Applicant
(Appellant)
- and THE SUPERINTENDENT OF BANKRUPTCY
Respondent
(Respondent)
- andATTORNEY GENERAL OF SASKATCHEWAN, ATTORNEY GENERAL OF
QUEBEC, ATTORNEY GENERAL OF BRITISH COLUMBIA, ATTORNEY
GENERAL OF ALBERTA, ATTORNEY GENERAL OF ONTARIO, MICHAEL
DOW, GWENDOLYN MIRON AND PETER TEOLIS
Interveners
MEMORANDUM OF ARGUMENT
(Pursuant to R. 42 of the Rules of the Supreme Court of Canada)
Counsel for the Appellant
Agent for the Appellant
Lenczner Slaght Royce Smith Griffin LLP Dentons Canada LLP
130 Adelaide Street West
1420 - 99 Bank Steet
Suite 2600
Ottawa, Ontario
Toronto, Ontario
K1P 1H4
M5H 3P5
Per:
Tel. No.:
Fax No.:
Email:
Email:
J. Thomas Curry
Andrew Parley
Jon Laxer
(416) 865-9500
(416) 865-3096
(416) 865-3093
(416) 865-9010
[email protected]
[email protected]
Per:
Tel. No.:
Fax No.:
Email:
K. Scott McLean
(613) 783-9600
(613) 783-9690
[email protected]
-2-
Counsel for the Respondent,
Superintendent of Bankruptcy
Agent for the Respondent,
Superintendent of Bankruptcy
Attorney General of Canada
Department of Justice
The Exchange Tower
130 King Street West
Suite 3400
Toronto, Ontario
M5X 1K6
Attorney General of Canada
50 O'Connor Street
Suite 500, Room 557
Ottawa, Ontario
K1A OH8
Per:
Per:
Christopher M. Rupar
Tel. No.:
(613) 670-6290
Fax No.:
(613) 954-1920
Email: [email protected]
Peter Southey
Michael Lema
Tel. No.:
(416) 973-2240
Fax No.:
(416) 973-0809
Counsel for the Intervener, Michael
Agent for the Intervener, Michael Dow,
Dow, Gwendolyn Miron and Peter Teolis Gwendolyn Miron and Peter Teolis
Scarfone Hawkins LLP
One James Street South
14th Floor
P.O. Box 926, Depot 1
Hamilton, Ontario
L8N 3P9
Supreme Advocacy LLP
100 - 340 Gilmour Street
Ottawa, Ontario
K2P OR3
Per:
Per:
Eugene Meehan, Q.C.
Tel. No.:
(613) 695-8855 Ex: 101
Fax No.:
(613) 695-8580
David Thompson
Matthew G. Moloci
Marie-France Major
Tel. No.:
(905) 523-1333
Fax No.:
(905) 523-5878
Agent for the Attorney General of
Saskatchewan
Gowling Lafleur Henderson LLP
160 Elgin Street
Suite 2600
Ottawa, Ontario
K1P 1C3
Per:
D. Lynne Watt
Tel. No.:
(613) 786-8695
Fax No.:
(613) 788-3509
-3-
Counsel for the Attorney General of
Quebec
Quebec
Procureur general du Quebec
1200, route de l'Eglise
2e etaqe
Ste-Foy, Quebec
G1V 4M1
Noel & Associes
111, rue Champlain
Gatineau, Quebec
J8X 3R1
Per:
Alain Gingras
Tel. No.:
(418) 643-1477
Fax No.:
(418) 644-7030
Per:
Pierre Landry
Tel. No.:
(819) 771-7393
Fax No.:
(819) 771-5397
Counsel for the Attorney General of
British Columbia
British Columbia
Attorney General of British Columbia
1001 Douglas Street
3 rd Floor
P.O. Box 9280 Station Provincial
Government
Victoria, British Columbia
V8V 1X4
Burke-Robertson
441 Maclaren Street
Suite 200
Ottawa, Ontario
K2P 2H3
Per:
Richard M. Butler
Tel. No.:
(250) 356-6559
Fax No.:
(250) 356-9154
Per:
Robert E. Houston, Q.C.
Tel. No.:
(613) 236-9665
Fax No.:
(613) 235-4430
Alberta
Attorney General of Alberta
Gowling lafleur Henderson llP
160 Elgin Street
Suite 2600
Ottawa, Ontario
K1P 1C3
Per:
D. Lynne Watt
Tel. No.:
(613) 786-8695
Fax No.:
(613) 788-3509
- 4Counsel for the Attorney General of
Ontario
Ontario
Attorney General of Ontario
720 Bay Street
4th Floor
Toronto, Ontario
M7A 2S9
Burke-Robertson
441 MacLaren Street
Suite 200
Ottawa, Ontario
K2P 2H3
Per:
Josh Hunter
Tel. No.:
(416) 326-3840
Fax No.:
(416) 326-4015
Per:
Robert E. Houston, Q.C.
Tel. No.:
(613) 236-9665
Fax No.:
(613) 235-4430
-iTABLE OF CONTENTS
PART I - STATEMENT OF FACTS
A.
B.
OVERViEW
FACTS
i.
Additional Relevant Facts
1
1
2
2
PART II - ISSUES
7
PART III - ARGUMENT
8
THE PARAMOUNTCYANALYSIS
8
i.
General Analytical Approach Not in Dispute
8
ii. Additional Principles Applicable to the Operation of Federal Bankruptcy
9
Laws
B. VALIDITY OF THE TWO ACTS
11
i.
The Validity ofthe Bankruptcy and Insolvency Act..
11
ii. The validity of s. 22(4) ofthe 407 ETR Act
12
A.
C.
i.
ii.
iii.
FRUSTRATION OF THE FINANCIAL REHABILITATION PURPOSE
12
Overview of the bankruptcy scheme
Bankruptcy's Purposes
Frustration of the Financial Rehabilitation Purpose
13
14
16
19
23
25
27
D. FRUSTRATION OF THE "EQUITABLE AND ORDERLY DISTRIBUTION" PURPOSE
E.
IMPOSSIBILITY OF DUAL COMPLIANCE
F.
No ENCROACHMENT ON PROVINCIAL LICENSING JURiSDiCTION
G. PARAMOUNTCY DID NOT REQUIRE THE EXTENSION OF CREDIT
H. CONFLICTING JURISPRUDENCE RELATING TO AUTOMOBILE LICENSING AND FINES
29
LEVIED BY PROFESSIONAL ORGANIZATIONS UNDER PROVINCIAL LAW
i.
ii.
Conflicting Law Has No application to 407
The Older Motor Vehicle Licensing Cases Have Been Overtaken
(i) Provincial Regulatory Purposes
(ii)
Bankruptcy Does Not Give the Undeserving a Free Ride
(iii)
Licensing
iii. Re Hover
29
31
32
34
35
36
PART IV - COSTS
39
PART V - NATURE OF ORDER SOUGHT
40
PART VI - TABLE OF AUTHORITIES
41
APPENDIX "A" - STATUTES RELIED ON
43
- 1Memorandum of Argument
Statement of Facts
PART 1- STATEMENT OF FACTS
A. OVERVIEW
1.
The Bankruptcy and Insolvency Act (BIA) is valid federal legislation, the
essential purposes of which are the equitable treatment of creditors'
claims and the financial rehabilitation of insolvent persons. On a debtor's
bankruptcy, the multiplicity of creditor proceedings is replaced by a single,
nationally consistent, and orderly proceeding for the recovery of provable
claims, which are eventually released unless exempted by Parliament.
2.
Two primary statutory tools allow Parliament to achieve its bankruptcy
purposes: the stay of all provable claims once the BIA is engaged, and the
release of those claims on discharge. The stay blocks individual creditor
activity, channeling creditors with provable claims into the BIA's single,
comprehensive, and exhaustive recovery process. The release operates
once the bankrupt has fulfilled his or her duties under that process and
obtained an absolute discharge. The unpaid balances of the creditors'
claims are then released, and the fresh start for the debtor, which began
at the onset of bankruptcy, is completed.
3.
Motor vehicle registration and driver licensing, including statutory
withholding of registration and licences until debts are paid, are matters of
provincial legislative jurisdiction. Ontario has conferred on 407 ETR
Concession Company Limited (407) a debt-collection remedy requiring the
Registrar of Motor Vehicles to refuse vehicle registration to persons
indebted to that private company for highway tolls, until 407 notifies the
Registrar that the debt is satisfied. However, on the bankruptcy of the
debtor, the operation of that provincial debt-collection remedy would
conflict with and frustrate Parliament's bankruptcy purposes. 407 could
-2Memorandum of Argument
Statement of Facts
choose not to participate in the single federal system, and continue to use
its individual remedy for the collection of the pre-bankruptcy debt. This
would prevent the bankrupt from getting the fresh start intended by the
BIA and give the 407 a greater recovery than unsecured creditors having
to participate in the single federal system. This conflict engages the
paramountcy doctrine, rendering the provincial debt-collection provision
inoperative.
4.
Parliament's
exclusive legislative jurisdiction over bankruptcy and
insolvency is a specific, limited and necessary extraction of jurisdiction
from the broad conferral of provincial jurisdiction over property and civil
rights in s. 92(13) of the Constitution Act 1867. Without the doctrine of
paramountcy, the federal statute could not provide the uniform national
bankruptcy scheme contemplated by the framers of the Constitution and
intended by Parliament. The inoperability of provincial debt-collection
remedies on bankruptcy has no impact on the remaining provincial
jurisdiction over vehicle registration and licensing.
B. FACTS
i.
5.
Additional Relevant Facts
The Superintendent of Bankruptcy (Superintendent) substantially accepts
407's statement of facts.
6.
The following additional facts are relevant:
i) when Matthew David Moore (Moore) assigned into bankruptcy on
November 10, 2007, his statement of affairs listed 407 as a creditor
Statement of Facts
owed $30,365 (out of total unsecured indebtedness of $90,695)
and listed no creditors as secured or preferred; 1
ii) 407 received notice of Moore's bankruptcy on November 14,
2007.2
,
iii) 407 did not file a proof of claim in the bankruptcy:"
iv) 407 received a notice of hearing for Moore's application for
discharqe;"
v) 407 did not object to that appllcation:"
vi) the trustee in bankruptcy objected, and the Registrar in
Bankruptcy granted a conditional discharge (requiring payment to
the trustee of $1,210), which Moore paid, obtaining his absolute
discharge on June 21,2011;6
vii) 407 continued to charge interest on Moore's unpaid accounts
after bankruptcy, more than doubling his debt from $34,977.06
(stated by 407 in its factum as owing from October 2007, shortly
before his bankruptcy) to more than $75,000 as of January
2011(six months before his discharge):" and
viii) during his bankruptcy, Moore changed jobs, from truck driver to
car salesperson.
At this point, his vehicle registrations were still
withheld as a result of 407's ss. 22(4) directions. He needed a valid
Affidavit of Matthew David Moore sworn August 10, 2011 (Moore affidavit), Exhibit "A",
Respondent's Record ("RR"), p. 8
2 Affidavit of Peter Whyte sworn October 4, 2011 (White affidavit), para. 31, Appellant's Record
("AR"), Vol. II, Tab 17, p. 127
3 Moore affidavit, Exhibit "0", RR, p. 18
4 Whyte affidavit, para. 34, AR, Vol. II, p. 128
5 Moore affidavit, Exhibit "B", RR, p. 14
6 Moore affidavit, Exhibits "B" and "C", RR, pp. 14, 16
7 Moore affidavit, Exhibit "E", RR, pp. 19-20
1
registration for his livelihood.
Statement of Facts
Continuing denial of registration
caused him great inconvenience and hardship."
7.
Moore is not alone in being exposed to 407's registration-withholding
remedy. Since 2007, the number of bankrupts and proposals debtors in
Ontario who list 407 as a creditor exceeds 6,000. 9
8.
Moore's motion before the Registrar in Bankruptcy challenging the
operability of 407's registration-refusal remedy was heard on September
8, 2011. Only counsel for Moore and for the Ministry of Transportation
(Ontario) appeared. Registrar Mills held that the "discharge of the
bankrupt dated June 21, 2011 released the bankrupt from all claims
provable in bankruptcy including the debt of the 407 ETR", and ordered
the Ministry of Transportation to issue licence plates to him on payment of
the usual licensing fees.'?
9.
That order was set aside at the request of 407 on Moore's consent. 407
advised that it was not aware of the motion before the Registrar, and the
matter proceeded afresh before Newbould J. of the Ontario Superior Court
of Justice." The Superintendent did not receive notice of 407's motion to
set aside, the subsequent motion before Newbould J., or 407's Notice of
Constitutional Ouestlon." As a result, the Superintendent did not appear
before Newbould J.
10.
By a decision dated October 25, 2011, Newbould J. dismissed Moore's
motion, finding no operational conflict between s. 22(4) of the Highway
Moore affidavit, paras. 6-10,12, and 17, RR, pp. 2-4
Endorsement of the Ontario Court of Appeal granting leave to appeal, dated September, 5,
2012("Endorsement") at para. 44, AR, Vol. II, Tab 9, p. 85
10 Order of Registrar Mills dated September 8, 2011, AR, Vol. II, Tab 6, p. 65.
11 Order of Newbould J. dated October 25, 2011, AR, Vol. I, Tab 2, p. 3
12 Endorsement at paras. 50 and 51, AR, Vol. II, Tab 9, p. 88
8
9
Statement of Facts
407 Act and the equitable distribution purpose of the BIA. Newbould J. did
not consider the frustration of federal purpose branch of the paramountcy
doctrine."
11.
On the day before the expiry of the appeal period, Moore advised the
Superintendent that he was not appealing the Order of Newbould J.,
because he had received a "very very attractive offer" to settle from 407. 14
12.
The Superintendent then sought to appeal the Newbould J. order as of
right pursuant to s. 5(4)(a) of the BIA or alternatively, under s. 193(e) of
the BIA. The appellate court found that the Superintendent had
demonstrated exceptional circumstances justifying leave to appeal despite
not intervening in the court below. This finding was based on the
Superintendent's unique responsibility in maintaining the integrity of the
bankruptcy and insolvency system, the conflict of the Newbould J. order
with the decision of Saskatchewan Court of Queen's Bench in Gorgius,
and the broad importance of the issues."
13.
The Court of Appeal allowed the Superintendent's appeal, declaring that
Moore's discharge from bankruptcy released him from all provable claims,
including the debt to 407, directing the Ministry of Transportation to issue
licence plates to Moore on payment of the usual licensing fees, and
declaring s. 22(4) to be "inoperative to the extent it thwarts the purpose of
providing a discharged bankrupt with a fresh start?"
Reasons of the Ontario Court of Appeal dated December 19,2013 ("Reasons") at paras. 44-45,
AR, Vol. I, Tab 5, pp. 37-38
14 Endorsement at paras. 14 and 15, AR, Vol. II, Tab 9, p. 76
15 Endorsement at paras. 32-34 and 52-53, AR, Vol. II, Tab 9, pp. 81-82 and 88-89
16 Order of the Ontario Court of Appeal dated December 19, 2013, AR, Vol. I, Tab 3, p. 7
13
14.
Statement of Facts
In her reasons for judgment, Pepall J.A concluded that there is a clear
conflict between s. 22(4) of the Highway 407 Act, and the fresh-start
purpose of the bankruptcy system. Having found frustration of this federal
purpose, she stated that the appellate court did not need to decide
whether the provincial law also frustrated the "equitable and orderly
distribution" purpose."
15.
The appellate court found no conflict between the two laws on the first
branch of paramountcy: operational conflict or mutual impossibility. It
reached this conclusion because 407's provincial registration-withholding
remedy is permissive, not mandatory."
17
18
Reasons at paras. 116 and 117, AR, Vol. 1, Tab 5, p. 63
Reasons at para. 93, AR, Vol. 1, Tab 5, p. 55
-7Issues
Memorandum of Argument
PART II - ISSUES
16.
On June 2yth, 2014, the Chief Justice stated the following constitutional
question:
Is s. 22(4) of the Highway 407 Act, 1998, S.D. 1998, c. 28,
constitutionally inoperative under the doctrine of federal
legislative paramountcy, having regard to the Bankruptcy
and Insolvency Act, R.S.C. 1985, C. B_3?19
17.
The Superintendent of Bankruptcy submits that the answer to this
question is yes. The operation of s. 22(4) of the Highway 407 Act would
conflict with and frustrate the purposes of the BIA, on the bankruptcy of a
407 debtor. It is therefore inoperative in that circumstance.
19
Order of McLachlin C.J.C. stating constitutional question, dated June 27, 2014, AR, Vol. II, Tab
16
Argument
PART 111- ARGUMENT
A. THE PARAMOUNTCY ANALYSIS
i.
18.
General Analytical Approach Not in Dispute
The doctrine of paramountcy resolves conflicts in the operation of valid
federal and provincial laws.2o The first analytical step requires a
determination of the validity of the two laws. This evaluation of
constitutional validity may be required of the entire statute or of a specific
section or subsectlon."
19.
If the two laws are valid, they are evaluated to determine whether they
conflict in their operation, either by the impossibility of mutual compliance,
or because the provincial law frustrates the purpose(s) of the federal law."
If the two laws can be properly interpreted in a manner that avoids either
of these conflicts, that is the preferred interpretation.P
20.
The onus is on the federal power to prove the conflict. The conflict must
be clear, given the preference in constitutional matters that valid laws of
each power should be allowed ancillary effects on the jurisdiction of the
other, so long as federal statutory purposes are not frustrated."
Rothmans, Benson & Hedges Inc. v. Saskatchewan, 2005 see 13, [2005] 1 s.e.R. 188 at
para. 11, Respondent's Authorities ("RA"), Tab 23
21 Canadian Western Bank v. Alberta, 2007 see 22, [2007] 2 s.e.R. 3 at para. 25, RA, Tab 5
22 Quebec (Attorney General) v. Canadian Owners and Pilots Association (COPA), 2010 see 39,
[2010] 2 s.e.R. 536 at para. 64, Appellant's Authorities ("AA"), Tab 15
23 Canadian Western Bank, supra, at para. 75, AA, Tab 5
24 COPA, supra, at para. 66, AA, Tab 15
20
Argument
ii.
Additional Principles Applicable to the Operation of Federal
Bankruptcy Laws
21.
Bankruptcy is a single statutory process applicable across the country.
When triggered, it necessarily modifies the civil law of Canadian provinces
and territories to impose its comprehensive legislative scheme. It can only
achieve its federal purposes in this way. Provincial laws not conflicting
with those purposes continue to apply when a debtor enters bankruptcy.
This Court explains (in a case involving only the orderly distribution
purpose of the BIA):
Parliament has enacted a complete code in the Bankruptcy
Act, one which necessarily calls upon provincial law for its
operation. But Parliament's invitation stipulates an important
limitation at that threshold of its domain, namely, that
provincial law simply cannot apply when to do so would
entail sUbvertin~ the federal order of priorities in the
Bankruptcy Act. 2 [emphasis added]
22.
Subsection 72(1) of the BIA reflects this invitation and the limitation,
providing:
The provisions of this Act shall not
be
deemed
to
abrogate
or
supersede the substantive portions
of any other law or statute relating to
property and civil rights that are not
in conflict with this Act. and the
trustee is entitled to avail himself of
all rights and remedies provided by
that law or statute as supplementary
to and in addition to the rights and
remedies provided by this Act.
[emphasis added]
25
La presents loi n'a pas pour effet
d'abroger ou de remplacer les
dispositions de droit substantif
d'une autre loi ou regie de droit
concernant la propriete et les droits
civils, non incompatibles avec la
presente loj, et Ie syndic est
autorise a se prevaloir de tous les
droits et recours prevus par cette
autre loi ou regie de droit, qui sont
supplementaires et additionnels
aux droits et recours prevus par la
presents 10L[je souligne]
Husky Oil Operations Ltd. v. Canada (M.NR.) [1995] 3 S.C.R. 453 at para. 85, RA, Tab 11;
see also Cushing v. Dupuy [1880] J.C.J. No.1, 5 A.C. 409 at pp. 415-416, RA, Tab 8
- 10Argument
23.
This Court construed this section as protecting provincial rights except
when they conflict with the BIA: "[S]o long as the doctrine of paramountcy
is
not
triggered,
federally
regulated
bankruptcy
and
insolvency
proceedings cannot be used to subvert provincially regulated property and
civil rights." 26
24.
Circumstances exist where valid provincial laws do not conflict with
bankruptcy on their face, but do conflict in their effect. To ensure the
achievement of the BIA's purposes, this Court directs that:
...in determining the relationship between provincial
legislation and the Bankruptcy Act, the form of the provincial
interest created must not be allowed to triumph over its
substance. The provinces are not entitled to do indirectly
what they are prohibited from doing directly.27
25.
Thus, in Husky Oil, and the quartet of cases to which it refers, the Court
construed the effect of provincial laws as frustrating bankruptcy purposes
though the conflict was not apparent on the face of the provincial law.
26.
As a result, if the Superintendent proves that the effect of the provincial
law is to frustrate federal bankruptcy purposes, the paramountcy standard
of proof is met.
27.
407 fails to acknowledge the recognition of Parliament and this Court that
federal bankruptcy law must and will conflict with provincial law relating to
property and civil rights when a debtor becomes bankrupt. It fails to
acknowledge that determining a provincial law's effect in this context, as
directed by this Court's jurisprudence, requires evaluating the underlying
purpose
26
27
of
the
provincial
law.
When
Crystalline Investments Ltd. v. Domgroup Ltd., 2004
RA, Tab 7
Husky Oil, supra, at para. 39, RA, Tab 11
this
proper
see 3, [2004] 1 s.e.R.
approach
is
60 at para. 43,
- 11 Memorandum of Argument
Argument
acknowledged, it is clear that the appellate court below did not evaluate
the merits of the provincial s. 22(4) debt-enforcement remedy, as 407
argues.
28
It simply concluded that the purpose and effect of the subsection
was debt collection and it therefore conflicted with the BIA, when Mr.
,Moore entered bankruptcy.
B. VALIDITY OF THE TWO ACTS
i.
28.
The Validity of the Bankruptcy and Insolvency Act
This Court has already determined the constitutional validity of the BIA
provisions engaged in this case. The specific provisions are those
governing which claims are swept into a bankruptcy proceeding and the
effect of bankruptcy on such claims during bankruptcy (principally, a stay
of proceedings and rateable sharing) and once the debtor is discharged
(release of claims). The footing for these provisions, and the entire BIA, is
s. 91 (21) of the Constitution Act, 1867, establishing federal jurisdiction
over "Bankruptcy and Insolvency".
29.
Specifically, this Court, (and in one case, the Privy Council), determined
the validity of insolvency legislation as follows: Newfoundland and
Labrador v AbitibiBowater Inc.29 (validity of provisions determining which
claims are subject to insolvency proceedings); Husky Oil Operations Ltd. v
Canada (M.N.R.)3o (validity of provisions as to priorities of claims); and
Canadian Bankers Association v A.G. Saskatchewan 31 and L'Union St.
Jacques de Montreal v Belisle 32 and Cushing v. Dupuy3 (validity of
provisions governing the status of claims during bankruptcy and on
discharge).
28
29
30
31
32
33
Appellant's Factum at paras. 5(a), 24, 26, and 47-56
2012 sec 67 at para. 18, RA, Tab 17
supra, at paras. 8 and 9, RA, Tab 11
[1956] s.e.R. 31 at 46 (per Rand J), RA, Tab 4
[1874] J.e.J. NO.1 at para. 2, RA, Tab 14
supra, at pp. 415-416, RA, Tab 8
30.
Argument
407 has never contested the constitutional validity of the BIA or any of its
particular sections." In its decision, the Ontario Court of Appeal stated: "
... there is no issue that ... the BIA ... [is] validly enacted, ... falling under
federal authority ...,,35 In this Court, 407 takes the same position: "[h]ere,
the Court of Appeal correctly found that both statutes are validly
enacted"."
ii. The Validity of s. 22(4) of the Highway 407 Act
31.
Subsection 22(4) of the Highway 407 Act is a valid provincial law enacted
under Ontario's exclusive legislative jurisdiction over property and civil
rights found in s. 92 (13) of the Constitution Act, 1867. Both courts below
found, and 407 admits, that the purpose of the registration-withholding
remedy found in the subsection is to enforce payment of a toll debt owed
to 407. In its factum it says: Licence Plate Denial provides 407 ETR with a
collection tool. ...37
32.
An essential feature of this valid provincial debt-collection remedy is that,
once invoked by 407 sending a letter to the Register of Motor Vehicles, it
continues to operate (by the Register refusing to renew vehicle
registration) until 407 advises the Registrar that the debt is satlsfled." The
Registrar exercises no registration discretion in this context.
C. FRUSTRATION OF THE FINANCIAL REHABILITATION PURPOSE
33.
These valid federal and provincial laws conflict in this case.
On the
bankruptcy of a 407 debtor the continued operation of s. 22(4) would
Appellant's Factum at para. 29
Reasons at para. 84, AR, Vol. I, Tab 5, p. 52
36 Appellant's Factum at para. 29
37 Appellant's Factum at para 10; Reasons at para. 43, AR, Vol. I, Tab 5, p. 37
38 Highway 407 Act, ss. 22(4), (6), and (7), Appellant's Factum, pp. 38 and 39. Subsection 22 (7)
also provides for cancellation of the debt on appeal in circumstances not relevant to this appeal
34
35
Argument
frustrate the BIA's purposes or, alternatively, create an impossibility of
dual compliance. The frustration and impossibility analyses require a brief
overview of the bankruptcy scheme, an exploration of the BIA's purposes,
and consideration of the two primary sections expressing those purposes.
i.
34.
Overview of the bankruptcy scheme
The BIA establishes a comprehensive legislative scheme for the
realization and distribution to creditors, in a single proceeding, of an
insolvent person's available property and income. In the ordinary course
of events, the BIA operates over two key phases: the onset of and "in
bankruptcy" proceedings, and the close of the proceedings.
35.
The onset of bankruptcy triggers a shut-down of ongoing and any new
unsecured-creditor recovery action against the debtor and his or her
property (ss. 69.3 and 70), the vesting of the bankrupt's property in the
trustee (s. 71) and the start of the trustee's efforts to maximize recovery
out of the bankrupt's non-exempt assets and income (ss. 30, 67, 68,
among others). During bankruptcy, the trustee gathers the available
assets and income. Creditors can prove their claims (ss. 121 and 124),
and the bankrupt is required to perform various duties to assist the trustee
(s. 158) and in turn receives trustee guidance and counselling as part of
the BIA's rehabilitation process (s.157.1, Superintendent's Directive
1R339 ) .
36.
The close of the bankruptcy proceedings brings the distribution of net
estate recoveries to the proven creditors, according to the federal
bankruptcy distribution requirements." It also brings the bankrupt's
discharge, with creditors having an opportunity, in some circumstances, to
39
40
Office of the Superintendent of Bankruptcy, Directive 1R3, Issued August 14, 2009, RA, Tab 29
ss. 136 and 141 provide rankings; ss.149-151 provide ordering for dividend payments.
- 14-
Argument
object to the discharge, or seek a refused or suspended discharge or the
attachment of conditions." On discharge certain claims itemized in the
BIA are not released and survive that dlscharqe," all other claims are
released rendering them unenforceable outside the BIA process." The
trustee is then discharqed."
ii.
37.
Bankruptcy's Purposes
In 1952, in Industrial Acceptance Corp. v. Lalonde, this Court stated that
Parliament's statutory scheme strikes a balance between maximizing
creditor recovery and providing the debtor with a fresh start:
The purpose and object of the Bankruptcy Act is to equitably
distribute the assets of the debtor and to permit ... his rehabilitation
as a citizen, unfettered by past debts. 45
38.
These two core and intertwined purposes have been reiterated by this
Court many times. 46
39.
In Century Services this Court recognized that an insolvency proceeding
embraces all claims, replacing the individual collection remedies available
to creditors:
While insolvency proceedings may be governed by different
statutory schemes, they share some commonalities. The most
prominent of these is the single proceeding model. The nature and
ss.168, 172, 172.1, and 173
s. 178(1)
43 s. 178(2)
44 s. 41
45 [1952] 2 S.C.R. 109 at p. 120, RA, Tab 12
46 R. v. Fitzgibbon [1990] 1 S.C.R. 1005 at pp. 1015-1016, RA, Tab 20; see also T.L. Cleary
Drilling Co. (Trustee of) v. Beaver Trucking Ltd. [1959] S.C.R. 311 at p. 316, RA, Tab 25;
Roberge v. Bolduc [1991] 1 S.C.R. 374 at p. 419, RA, Tab 22; Husky Oil, supra, at para. 7, RA,
Tab 11; Vachon v. Canada (E.I.C.) [1985] 2 S.C.R. 417 at pp. 429-430, RA, Tab 26; Canadian
Bankers Association v. Saskatchewan (A. G.), supra, at p. 46, RA, Tab 4;
41
42
Argument
purpose of the single proceeding model are described by Professor
Wood in Bankruptcy and Insolvency Law:
They all provide a collective proceeding that supersedes the
usual civil process available to creditors to enforce their
claims. The creditors' remedies are collectivized in order to
prevent the free-for-all that would otherwise prevail if
creditors were permitted to exercise their remedies. In the
absence of a collective process, each creditor is armed with
the knowledge that if they do not strike hard and swift to
seize the debtor's assets, they will be beat out by other
creditors. [pp. 2-3]
The single proceeding model avoids the inefficiency and chaos that
would attend insolvency if each creditor initiated proceedings to
recover its debt."
40.
Most recently, in Schreyer v. Schreyer, this Court reiterated Parliament's
pursuit of both objectives:
The very design of insolvency legislation raises difficult policy
issues for Parliament. Legislation that establishes an orderly
liquidation process for situations in which reorganization is not
possible, that averts races to execution, and that gives debtors a
chance for a new start is generally viewed as a wise policy choice.
.., As a consequence, the interpretation of the BIA requires the
acceptance of the principle that every claim is swept into
bankruptcy and that the bankrupt is released from all of them upon
being discharged unless the law sets out a clear exclusion or
exemption. 48 [emphasis added]
Century Services Inc. v. Canada (Attorney Genera!), 2010 SCC 60, [2010] 3 SCR 379 at para.
22, RA, Tab 6
48 2011 SCC 35, [2011] 2 S.C.R. 605 at paras. 19 and 20, RA, Tab 24
47
- 16Argument
iii.
41.
Frustration of the Financial Rehabilitation Purpose
This Court has explained that the rehabilitation of the bankrupt begins at
the very onset of bankruptcy." The s. 69.3 stay diverts creditors to the
BIA recovery scheme and relieves the debtor from further exposure to
individual proceedings or remedies of any kind. That relief, plus the BIA's
recognition of provincial property exernptions.i" the sheltering of core
income," and financial-counselling provisions,52 all support the financialrehabilitation purpose.
42.
The full achievement of financial rehabilitation, however, depends on the
release of the unpaid balances of provable claims on the bankrupt's
absolute discharge (s. 178(2». The crucial link between that release and
financial rehabilitation was recognized by this Court in the Canadian
Bankers Association and Schreyerdecisions. 53
43.
Subsection 178(1) provides a list of claims that Parliament has deemed to
have sufficient social importance that they are not released, instead
surviving discharge.54 Such exemptions include: court-imposed fines,
penalties and
restitution orders."
court awards of damages for
intentionally inflicted bodily harm or sexual assault." debts for alimony or
maintenance or support;" and debts arising out of fraud."
49
Vachon, supra, at p. 430, RA, Tab 26
s. 67(1 )(b)
51 s. 68
50
s. 157.1
GBA, supra, at p. 46, RA, Tab 4 and Scnreye«. supra, at paras. 19 and 20, RA, Tab 24
54 Reasons at para. 100, AR, Vol I, Tab 5, p. 57
55 S. 178(1)(a)
56 S. 178(1)(a.1)(i)
57 S. 178(1)(b) and (c)
58 S. 178(1)(d)
52
53
- 17 Argument
44.
Subsection 178(2) provides that on discharge the bankrupt is released
from all other claims provable in bankruptcy:
Subject to subsection (1), an order
of discharge releases the bankrupt
from all claims provable in
bankruptcy.
45.
Une ordonnance de liberation libere
Ie
failli
de
toutes
autres
reclamations prouvables en matiere
de faillite.
Parliament has not provided in s. 178(1) that highway-toll debts survive a
discharge in bankruptcy.
46.
All of 407's debtors are car owners and most are likely drivers. The
registration-withholding debt-collection remedy carefully targets an activity
likely to be important in 407's debtors' lives generally, and in Mr. Moore's
case, his livelihood as well. The remedy is not limited to a debtor's use of
the 407 toll road. It prevents all legal use of the debtor's vehicle.59
47.
The ongoing collection remedy frustrates the fresh start of the driverdebtors by forcing them, as a condition of resuming their normal life, to
pay the 407 pre-bankruptcy toll-debt. That payment will be made either
before or after their discharge, from property or income that Parliament
specifically intended not to be available to creditors with provable claims.
48.
Through its scheme of distribution the BIA strikes a balance between
property of a bankrupt divisible among his creditors and property retained
by the bankrupt to form the basis of his fresh start."
R easons at para. 113, AR, Vol. I, Tab 5, p. 62
60 ss. 67(1) and 68 dictate property to be kept by the bankrupt or remitted to the estate; ss. 136
and 141 dictate distribution to unsecured creditors on a pro rata basis.
59
49.
Argument
A bankrupt must deliver to his trustee his pre-bankruptcy property,
property acquired during his bankruptcy, an element of any surplus
income during that period, and any amounts ordered to be paid as a
condition of discharge. The bankrupt is entitled to retain exempt assets, a
minimum income during his bankruptcy, and all of his post-discharge
property and income." The 407 debt-collection remedy,
however,
compels the bankrupt to use this second set of property to satisfy the
released debt of a specific creditor, when that creditor's pro rata share of
the debt should only have been paid out of the first set by the trustee. This
frustrates the bankrupt's fresh start. He is forced to use property
Parliament intended him to retain, to satisfy pre-bankruptcy debts that
were supposed to have been resolved through his bankruptcy proceeding.
50.
Parliament recognizes provincial exemptions from execution in the
bankruptcy process. In Ontario, motor vehicles of debtors valued less than
$5,640 are exempt from execution. Those vehicles are also exempt assets
in bankruptcy
62
and, like all exempt assets, are intended be used to
achieve and improve the viability of the debtor's fresh start. If the use of
the exempt vehicle is prevented by a provincial debt-collection remedy,
this additional aspect of Parliament's fresh-start purpose will also be
frustrated.
51.
The U.S Supreme Court has found state laws invalid that attempted to
enforce payment of a bankrupt's indebtedness through licence denial. The
invalidity was explained to arise from the conflict of the state licence
withholding law with the fresh-start principle, an essential purpose of the
U.S. bankruptcy legislation, giving debtors:
ss. 67(1)(b)-(b.3) and 68, and Zemlak v. Zemlak, (1987) 42 D.L.R(4th) 395, at p. 405; [1987] 6
W.W.R 114 (Sask C.A.) at 34, RA, Tab 28
62 S. 67(1)(b); Execution Act, RS.O. 1990, c. E.24, s.2(1) -- 6; Ontario Regulation 657/05,
Exemptions, s.1; and Reasons at para. 33, AR, Vol. I, Tab 5, p, 32
61
Argument
...a new opportunity in life and a clear field for future effort,
unhampered by the pressure and discouragement of preexisting debt.53
52.
407 argues that the appellate court overstated the financial rehabilitation
purpose of bankruptcy, suggesting that bankruptcy law requires the
licensing of Moore following his discharqe." This is not correct. The
appellate court did not find that bankruptcy law requires a province to
licence activities. Only provincial law can determine if a vehicle should be
registered or a driver licensed. Paramountcy only removes from the
provincial licensing decision any debt-repayment requirement when a
debtor is bankrupt'"
D. FRUSTRATION OF THE "EQUITABLE AND ORDERLY DISTRIBUTION"
PURPOSE
53.
If s. 22(4) operates after the bankruptcy of a 407 debtor it would also
frustrate the equitable distribution purpose of bankruptcy. Under provincial
law 407 would be able to continue its individual debt collection outside the
single process required by the BIA. Using the powerful registrationwithholding remedy 407 would be able to enforce the full amount of its toll
debt while all other unsecured creditors are required to share rateably in
the distribution required under the bankruptcy process.
54.
The appellate court below chose not to consider whether the "equitable
and orderly distribution" purpose was frustrated, having found that s. 22(4)
frustrated the financial-rehabilitation purpose on the discharge of Mr.
Moore. The Superintendent supports the latter conclusion, but states that
it did not go far enough. As the Alberta Court of Appeal in Moloney found
63
64
65
Perez v. Campbell (1971) 402 U.S. 637, at p. 648 (p. 111 of RA), RA, Tab 19
Appellant's Factum, paras. 63, 64, and 83-85
See paras. 74-80 below.
- 20Argument
in similar clrcurnstances." the equitable distribution purpose was also
frustrated from the very onset of the bankruptcy proceedings.
55.
When a bankruptcy occurs, the first critical impact is the automatic stay of
proceedings imposed by s. 69.3 of the BIA. The stay of proceedings stops
all ongoing unsecured-creditor collection activities and bars new ones,
diverting those creditors into the single, uniform and exhaustive BIA
process. Section 69.3 provides as follows:
Subject to subsections (1.1) and (2)
and sections 69.4 and 69.5, on the
bankruptcy of any debtor, no
creditor has any remedy against the
debtor or the debtor's property, or
shall commence or continue any
action,
execution
or
other
proceedings, for the recovery of a
claim provable in bankruptcy.
[emphasis added]
56.
Sous reserve des paragraphes
(1.1) et (2) et des articles 69.4 et
69.5, a compter de la faillite du
debiteur, ses creanciers n'ont
aucun recours contre lui ou contre
ses biens et ils ne peuvent intenter
ou continuer aucune action,
mesure d'executlon ou autre
procedure en vue du recouvrement
de reclamations prouvables en
matiere de faillite. [je souligne].
The appellate court below recognized, and it is not disputed that 407's
entire claim arose before Mr. Moore's bankruptcy. Accordingly 407 had a
"provable claim" within the meaning of s. 121 of the BIA.
57.
This Court has interpreted the breadth of the word "remedy" in s. 69.3 as
covering: "...any kind of attempt at recovery, judicial or extrajudicial.t'"
Parliament intended to exclude all actions against either the debtor or his
property:
... in my opinion the courts were right to give, expressly or by
implication, a broad meaning to the stay of proceedings
imposed by s. 49(1) [predecessor of s. 69.3] of the
Bankruptcy Act. This broad meaning is confirmed by the fact
66
67
Moloney v. Alberta, 2014 ABCA 68 at paras. 50 and 51, RA, Tab 16
Vachon, supra, at p. 423, RA, Tab 26
Argument
that the legislator took the trouble to exclude actions against
either the [debtor] or his property.
As Houlden and Morawetz wrote in Bankruptcy Law of
Canada ..., under s. 49 [now s.69.3] of the Bankruptcy Act:
An ordinary unsecured creditor with a claim provable
in bankruptcy can only obtain payment of that claim
subject to and in accordance with the terms of the
Bankruptcy Act. The procedure laid down by that Act
completely excludes any other remedy or procedure.
The Bankruptcy Act governs bankruptcy in all its aspects. It
is therefore understandable that the legislator wished to
suspend all proceedings, administrative or judicial, so that
the objectives of the Act could be attained." [emphasis
added]
58.
407 concedes that s. 22(4) is a collection tool. In any case, this collection
tool is clearly a "remedy against the debtor" and "a ... proceeding ... for the
recovery of a claim provable in bankruptcy." None of the recognized
exceptions to the stay apply. 69
59.
On a debtor's bankruptcy, all unsecured creditors must cease collection
proceedings and either participate in the single federal proceeding for the
equitable and orderly distribution of the bankrupt's estate, or write off the
debt." If s. 22(4) were operable, 407 would receive a provincial exemption
from that legal obligation imposed on all other unsecured creditors. Its
remedy would continue to operate regardless of bankruptcy until the entire
debt is paid. If paid, 407 would make recoveries unavailable to other
68
69
Vachon, supra, at para. 24-26, RA, Tab 26
Leave to continue the individual collection can be sought, and individual collection may occur
after the trustee is discharged before the bankrupt is discharged: ss. 69.3(1) and 69.4.; L.W.
Houlden & G.W. Morawetz, Bankruptcy and Insolvency Law of Canada, loose-leaf edition,
th
(consulted on November 7, 2014) 4 ed. (Toronto: Carswell, 2013) ("Houlden & Morawetz
Bankruptcy and Insolvency Law of Canada"), Vol. 2, F§138 "Debts released by bankruptcy", p.
3-382, RA, Tab 30
Argument
unsecured creditors and out of assets or income (whether exempt or postbankruptcy) that the BIA did not intend any unsecured creditor to receive.
60.
407's individual collection under the provincial debt-collection remedy
would breach the "equality among creditors" principle of insolvency law."71
The remedy would be "repugnant to the principle that all creditors of equal
standing must be treated equally" and "bestow a unique advantage upon
one creditor in a class of many such."?
61.
This aspect of "equitable and orderly distribution" is "upstream" of the
issue addressed by this Court in Husky Oil Operation and the "quartet"
decisions, which addressed and prevented provincial laws from directing a
different priority outcome than that directed by the BIA. The present issue
is the conflict between the BIA's purpose that collection proceedings occur
in a single proceeding, through the trustee, in place of individual
proceedings, and a provincial law that would operate to allow individual
proceedings. Even if 407 recovered nothing, its continued enforcement of
an unsecured-creditor remedy would conflict with the "orderly" and "single
proceeding" scheme of the BIA.
62.
The "equitable and orderly distribution" purpose applies equally after the
bankrupt's discharge. The pre-bankruptcy debts are released and can no
longer be enforced by the unsecured creditors. Any operation of s. 22(4)
after that stage is equally inconsistent with that purpose, for the same
reasons outlined above. Creditors could simply pursue collection after
discharge for pre-bankruptcy debts, avoiding the single process required
by the federal scheme.
71
72
C./.B.C. v. Cicoria 138 OAC. 342,21 C.B.R. (4th) 232 (CA) at para. 2, RA, Tab 2
Re Boucher, 2007 BCSC 644 at para. 29, RA, Tab 21
63.
Argument
407 argues that the appellate court construed the purposes of bankruptcy
too broadly by treating Moore's 407 debt as extinguished, when it was
only released." The appellate court did not make this alleged distinction.
64.
The jurisprudence of this Court is clear that when the debt of a discharged
bankrupt is released the creditor is barred from enforcing it.
74
This is
admitted by 407.
65.
Yet the implicit argument of 407 is that because it does nothing after
registering its debt under s. 22(4), it is not "enforcing" the debt. This is
patently incorrect. The effect of the law - ongoing provincial registration
withholding until the debt is paid - is a clear example of ongoing
enforcement. It may be passive on the part of 407, but the provincial
registration-withholding remedy exists, is ongoing, and only ends when
407 advises the Registrar that the debt is satisfied. As previously
discussed, this Court's jurisprudence instructs that the effect of the
provincial law must not be allowed to frustrate the purpose of bankruptcy.
The effect of the provincial law is to provide an ongoing enforcement
remedy, when bankruptcy bars such remedies.
66.
This Court's jurisprudence recognizes a distinction between the release of
a debt and its extinction, following a discharge from bankruptcy. However,
this distinction is not relevant in this case or any other that simply involves
enforcement by an unsecured creditor against its debtor.
E. IMPOSSIBILITY OF DUAL COMPLIANCE
67.
The appellate court below declined to find conflict on the first branch of
paramountcy - operational conflict or "mutual impossibility." It did so
73
74
Appellant's Factum, paras. 66-68
Schreyer, supra, at para. 21, RA Tab 24
Argument
because the 407 debt-collection remedy was permissive and not
mandatory, and because its invocation by 407 before bankruptcy did not
result in inevitable conflict after bankruptcy, since the bankrupt could avoid
payment of his toll-debt if he chose not to drive.
68.
This Court has reasoned that the first branch of paramountcy is not
engaged when the federal law in the conflict analysis is permissive. In
Spraytech, for example, the federal legislation in question regulated which
pesticides could be manufactured and used in Canada. The municipal
bylaw in question prohibited the use of a federally-licensed pesticide in the
municipality when used for purely aesthetic pursuits. The company
precluded from using the pesticide by the municipal bylaw, had not itself
obtained the federal licence allowing the pesticide's general use, but
generally was permitted to use it by the federal licence. This Court
concluded that the federal licensing was permissive only and therefore:
"No one is placed in an impossible situation by the legal imperative of
complying with both regulatory regimes.,,75
69.
However, in this case the federal statute is mandatory. Upon bankruptcy,
s. 69.3 of the BIA automatically provides a stay of proceedings, such that
no creditor has any remedy against the debtor or the debtor's property.
Then, upon the debtor's discharge, ss. 178(2) provides that the creditors'
claims are released, meaning that "they 'cease to be able to enforce
claims against the bankrupt that are provable in bankruptcy";"
70.
While the 407 provincial debt-collection remedy is not mandatory, once
engaged it confers on 407 a specific and continuing remedy. 407 chose to
invoke this statutory benefit before Mr. Moore's bankruptcy was engaged.
114957 Canada iiee (Spraytech, Societe d'arrosage) v. Hudson (Town), 2001 SCC 40, [2001]
2 S.C.R. 241 at para. 35, RA, Tab 1
76 Schreyer, supra, at para. 21, RA Tab 24; see also Moloney, supra, at para. 21, RA Tab 16
75
Argument
The provincial law then purported to provide 407 with an ongoing remedy
that could only be removed when the debt was paid.
71.
On bankruptcy, the provincial statute says to 407: "you have an ongoing
remedy of registration-withholding until the pre-bankruptcy debt of Mr.
Moore is satisfied" while s. 69.3 of the BIA says: "you have no remedy
against Mr. Moore". Similarly, after Mr. Moore's discharge, s. 22(4)
provides 407 with an ongoing enforcement remedy while ss. 178(2)
releases the debt, precluding further enforcement. Mutual compliance with
these directly conflicting provisions is impossible." Compliance with one is
defiance of the other."
72.
The fact that Mr. Moore could choose not to register and drive his vehicle
did not change 407's non-compliance with the requirements of the BIA.
The ongoing remedy directly conflicted with the federal stay on creditor
proceedings and remedies and, after discharge, with the release of 407's
debt.
73.
Thus the appellate court erred in not finding the inoperability of s. 22(4) on
the mutual impossibility branch of paramountcy as well as the frustration
of federal purpose branch.
F. NO ENCROACHMENT ON PROVINCIAL LICENSING JURISDICTION
74.
The appellant suggests that the inoperability of s. 22(4) of the Highway
407 Act would have the effect of giving Parliament jurisdiction to compel
provincial licensing of discharged bankrupts." This is not correct.
M & 0 Farm Ltd. v. Manitoba Agricultural Credit Corp. [1999]2 S.C.R. 961 at paras. 39-42, RA,
Tab 15
78 Multiple Access Ltd. v. McCutcheon at p. 191, AA, Tab 11
79 Appellant's Factum, paras. 63-64 and 82-85
77
75.
Argument
Licensing of provincial activities such as driving remains within the
exclusive legislative jurisdiction of provinces under sections 92(10) and
(13) of the Constitution Act 1867. Mr. Moore's entitlement to a motor
vehicle permit could only be determined according to provincial statutory
and administrative law, even after s. 22(4) was found inoperable by the
appellate court.
76.
Once s. 22(4) is declared inoperable, Ontario law determines whether the
debtor's motor vehicle is reqistered."
If there is no other provincial
requirement preventing registration then, on the debtor's payment of the
appropriate fee, public law requires the vehicle registration to be issued.
77.
For example, if a driver whose vehicle permit was refused due to the
vehicle failing an emission test also owed a debt to 407, and became
bankrupt, s. 22(4) would be inoperable. Nevertheless, under provincial
law, the driver would continue to be ineligible for a permit, on a ground
(emissions-test failure) unconnected with debt collection. All other valid
and operable provincial requirements must be satisfied before registration
can issue. In this example, the doctrine of paramountcy has no bearing on
the
valid
provincial registration requirement of meeting emission
standards, as the latter does not frustrate any bankruptcy purpose.
78.
Therefore, contrary to 407's allegations, paramountcy only removes debtcollection considerations from provincial licensing decisions, because their
effect frustrates federal bankruptcy purposes. All other provincial licensing
considerations continue to operate unaffected. Bankruptcy does not
require provinces to licence bankrupts. Federal bankruptcy law simply
makes debt-repayment considerations an inoperable part of provincial
licensing considerations when a bankruptcy occurs.
80
In this case, likely s. 22(7) of the Highway 407 Act, Appellant's Factum, pp. 38-39
- 27Argument
79.
All valid provincial laws providing licence or permit withholding until debts
are paid are debt-collection remedies.
Licensing decisions under such
provisions are premised exclusively on payment of the debt.
80.
407 erroneously asserts that the appellate court's judgment construes the
BIA too broadly by mandating provincial licensing, and that it creates a
legal vacuum." All provincial licensing considerations continue to operate
on bankruptcy, except those enforcing the payment of debts. The
operation of provincial debt-collection law is then replaced by federal
bankruptcy law. There is no legal vacuum when this occurs.
G. PARAMOUNTCY DID NOT REQUIRE THE EXTENSION OF CREDIT
81.
407 also argues that it would be required to extend credit to a bankrupt if
paramountcy rendered s. 22(4) tnoperative.Y The BIA and the doctrine of
paramountcy do not require the 407 to extend credit. Instead, 407's
unrestricted granting of credit is the consequence of the company's
chosen business model.
82.
Toll roads can require payment in several ways, including at the beginning
of their use, or as in the case of the 407 toll road, by extending
unrestricted credit to drivers by allowing open access and departure, with
subsequent billing. On the first kind of toll road payment is immediate. No
credit is granted.
83.
It was 407 that chose to participate in the open-access model. It chose the
risk
of
extending
credit without the
opportunity to
review the
creditworthiness of its potential debtor. In return for the choice of an openaccess model, 407 is able to offer its customers ease of access, and it
81
82
Appellant's Factum, paras. 62 and 68
Argument
enjoys the benefits of not maintaining and staffing toll booths. It also
received from Ontario the registration-withholding debt-collection remedy.
84.
However, on a 407 debtor's bankruptcy, that debt-collection remedy
conflicts with the BIA. The 407 ETR is not exempt from the doctrine of
paramountcy as a result of its choice of business model.
85.
It was this concern that made the appellate court comment that the: "...
introduction into the mix of a private commercial participant in a publicprivate enterprise is inadequate in my view to remove the evident
inconsistency [of the provincial act with the BIA]".83
86.
This comment did not evaluate the merits of the provincial law, as
incorrectly argued by 407.84 It simply recognized that the provincial law
conflicted with the federal law even when the beneficiary of the provincial
statute was a private company that had chosen an open-access policy for
its toll road.
87.
407 remains protected by its debt-collection remedy for all postbankruptcy credit. Credit extended to a bankrupt after his or her
bankruptcy is not a provable claim in that bankruptcy, and therefore may
be collected in the normal course. Therefore, although 407's choice of
business model compels it to extend credit freely, it is protected by
registration denial for post-bankruptcy credit."
83
84
85
Argument
H. CONFLICTING
JURISPRUDENCE
RELATING
TO
AUTOMOBILE
LICENSING AND FINES LEVIED BY PROFESSIONAL ORGANIZATIONS
UNDER PROVINCIAL LAW
i.
88.
Conflicting Law Has No Application to 407
407 relies on a line of older cases involving provincial licence-withholding.
That jurisprudence has been overtaken by recent decisions of provincial
courts. The older line of jurisprudence also has no application to s. 22(4)
as 407 has admitted that the provision is a debt-collection tool.
89.
In 1969, in Re Caporale, on a contested discharge hearing in a bankruptcy
proceeding raising no issue of the division of powers," Justice Houlden
commented in his endorsement that the objecting provincial creditor had
the powerful tool of licence withholding that it could exercise following
discharge, until the province's debt was repaid."
90.
This case was the basis for a line of cases summarized in one paragraph
of Houlden and Morawetz's bankruptcy text quoted at paragraph 65 of
407's factum. What is not quoted by 407 is the following excerpt from that
same text:
The caselaw in this area is shifting, and has not quite settled,
but is likely with the expected appellate judgments in some
of the cases discussed below."
91.
The text then describes the recent decisions in Gorguis89, Clarke 9o ,
Motoney", and the appellate decision in this case, all of which (directly or
Indeed in 1970 the frustration-of-federal-purpose conflict in the paramountcy doctrine had not
yet been recognized.
87 Re Caporale [1970] 1 O.R. 37 (S.C.) at p. 2, AA, Tab 6,
88
Houlden & Morawetz Bankruptcy and Insolvency Law of Canada, H67 "Effect of Order of
Discharge on Right to Operate a Motor Vehicle", pp. 6-289 - 6-290.4, RA, Tab 30
89 Gorguis v. Saskatchewan Government Insurance, 2011 SKQB 132, RA, Tab 9; rev'd on other
grounds (Saskatchewan Government Insurance v. Gorguis, 2013 SKCA 32
90 Ontario (Minister of Finance) v. Clarke, 2013 ONSC 1920, RA, Tab 18
91 supra, RA, Tab 16
86
Argument
by clear inference) decided that the 1969 Caporale decision of Justice
Houlden had been overtaken by developments in the jurisprudence
regarding bankruptcy and the division of powers in Canada's constitution.
92.
The older line of cases relied on by 407 accepted arguments that
provincial laws requiring licence withholding until certain debts were paid
serve provincial regulatory purposes. They found regulatory purposes of
licence withholding which did not conflict with bankruptcy, whereas the
recent cases conclude that the provincial laws conflict with the BIA
because the purpose and effect of the licence withholding is debt
collection.
93.
Putting aside that the older line of cases has been overtaken, they also
provide no support to 407's argument. 407 is a private company which
acknowledges that the purpose of s. 22(4) is debt collection. Its interest is
monetary, not regulatory.
94.
The older lower court cases, includinq Caporale92, Caligiuri93, Zahara, 94
and the Alberta Court of Appeal decision in Re Hovers, comprise the
jurisprudence overtaken by more recent decisions. They arose in two
contexts: provincial licence withholding used to recover judgment debts
arising from motor vehicle accidents, and licence withholding used by
provincial professional organizations to recover debts in the nature of
"fines" and "costs" levied by those organizations.
92
93
94
95
supra, AA, Tab 6
Caliguri and Co-Operators Insurance Association, (1984) 48 O.R. (2d) 364 (Co. Ct.), RA, Tab 3
Zahara v. Minister of Highways for Alberta (1965) 51 W.W.R. 289 (Alta. S.C.), RA, Tab 27;
Cooke v. Pilot, (1996),68 A.C.W.S. (3d) 797,24 O.T.C. 1, (ant. GenDiv), AA, Tab 8;
2005 ABCA 101, RA, Tab 10
- 31 Argument
95.
Although the older jurisprudence does not apply to the obvious debtcollection purpose (and effect) of s. 22(4), the Superintendent will address
it because it is relevant to the Moloney appeal in this Court currently
scheduled to be heard on the same date as this appeal.
ii.
The Older
Overtaken
96.
Motor Vehicle Licensing Cases Have Been
The older cases relied on by 407 have been overtaken by the
development of this Court's jurisprudence on paramountcy's frustration of
federal purpose branch, by this Court's direction that the effect of a
provincial law cannot frustrate Parliament's bankruptcy purposes, and by
recent judicial recognition that a provincial licence-withholding provision
that is based on the payment of a debt must be debt-collection. While valid
in most contexts, following a debtor's bankruptcy such a provincial law
clearly frustrates the purposes of bankruptcy.
97.
Before the recent jurisprudence applying the doctrine of paramountcy to
provincial licence-withholding debt-repayment remedies, several lower
court decisions commented upon, or upheld, the continued operability of
those laws following the bankruptcy of the debtor.
98.
In each of these cases, provinces had created funds to pay creditors
holding unpaid judgments arising from motor vehicle accidents. The
provincial statutes subrogated a provincial official to the interest of the
judgment creditor and required the licence of the judgment debtor to be
withheld until payment of the judgment debt. In all cases but Caporale, the
judgment debtor went bankrupt and argued that the financial rehabilitation
purpose of bankruptcy rendered the provincial licence-withholding remedy
inoperative.
99.
Argument
The reasons for decision in these older cases involved similar
propositions:
(i) The provincial purposes for licence withholding are the
requirement that those breaking provincial driving laws
accept responsibility for their actions by paying their debt,
and protection of the public through deterrence of prohibited
activities;
(ii) If a licence-withholding remedy is inoperable on bankruptcy
then an irresponsible driver can get away with their
unacceptable conduct by going bankrupt; and
(iii) Licensing is a privilege. It is not property, subject to
bankruptcy. Licensing decisions fall within provincial
jurisdiction, and the BIA and the doctrine of paramountcy
cannot act to substitute federal criteria for those provided by
provincial legislatures.
100.
None of these propositions are valid. Drivers are held accountable by the
penalties that are applied when driving laws are broken. These penalties
survive bankruptcy and deter the unlawful conduct. When the debts of
bankrupt drivers are the result of conduct that is less than 'honest but
unfortunate' the creditor can seek a conditional discharge in bankruptcy."
Finally, licensing of drivers is a privilege under provincial legislative
jurisdiction, but when the licensing decision is based on the collection of a
debt, it is inoperable on the debtor's bankruptcy.
(i)
Provincial Regulatory Purposes
101. Activities such as uninsured driving are a threat to public safety and are an
offence under provincial highway traffic legislation. Parliament has
specifically exempted from release in bankruptcy all court-imposed fines
96
Houlden & Morawetz Bankruptcy and Insolvency Law of Canada, supra, H§40(19), (20), pp. 6174.4 to 6-180.2, RA, Tab 30
Argument
and remedies." Licence suspensions penalizing drivers who commit the
offence (that is, the loss of licence as the result of a conviction for a motorvehicle offence) are unaffected by bankruptcy or the doctrine of
paramountcy. The deterrent effect of these penalties continues unabated,
regardless of the debtor's bankruptcy.
102.
In these licensing bankruptcy cases, provinces have argued that licence
withholding based on non-payment of a motor vehicle accident judgment
serves a regulatory purpose. They argue, for example, that withholding a
licence until an uninsured driving debt is paid forces the uninsured driver
to take responsibility for their unacceptable actions. This argument was
most colourfully summarized in the 1984 case Caliguri:
[The purpose of licence withholding was] to prevent
irresponsible drivers from having the continued privilege of
driving in Ontario without being made to account for the
normal consequences of their vast lrresponsibllities."
103.
This proposition, recently rejected by the Alberta Court of Appeal, does
not withstand careful consideratlon" Fines and licence suspensions tied
directly to negligent or other unlawful driving make at-fault drivers
accountable for their actions. Those are the lawful consequences of
conviction for prohibited activities. If an uninsured driver has not taken
responsibility for their actions following the imposition of these penalties,
then it is far from clear that they will take responsibility following a delay in
their resuming the privilege of driving until judgment debts arising from
their conduct are paid.
104. A statute requiring licence-withholding based only on debt repayment will
certainly distinguish between the financially able uninsured driver and the
97
98
99
s. 178(1)(a)
Caliguri, supra, at p. 6 (p. 10 of RA), RA, Tab 3
Moloney, supra at paras. 26(c) and 38(h), RA, Tab 16
Argument
financially challenged uninsured driver. But the decision is made simply
on debt-payment. The licensing of the driver is not based on their remorse
or responsibility. One could well imagine a reckless and unrepentant
uninsured driver with money getting their licence renewed, while a deeply
sorry, impoverished uninsured driver would be unable to do
SO.100
The
only difference between them is financial: one can drive by paying the
debt, the other cannot. The only certain thing achieved is that licencewithholding will be effective in getting a provincial debt paid.
(ii)
105.
Bankruptcy Does Not Give the Undeserving a Free Ride
There is no question that bankruptcy policy requires compromise between
competing policy objectives. As LeBel J. put it in Schreyer.
The very design of insolvency legislation raises difficult
policy issues for Parliament. Legislation that establishes an
orderly liquidation process for situations in which
reorganization is not possible, that averts races to execution
and that gives debtors a chance for a new start is generally
viewed as a wise policy choice. Such legislation has become
part of the legal and economic landscape in modern
societies. But it entails a price, and those who might have to
pay that price sometimes strive mightily to avoid it. Despite
the proven wisdom of the policies underpinning the
insolvency legislation, it is understandable that few
appreciate the "haircuts" or even outright losses that
bankruptcies trigger.101 [emphasis added]
106.
Parliament takes into account the need to require responsibility of
individual actors in making the compromises that exist in the BIA. As just
noted, any fine, penalty or restitution order imposed by a court is not
released on the discharge of the bankrupt.l'"
100
101
102
Moloney, supra at para. 45(c), RA, Tab 16; Clarke, supra at para. 54, RA, Tab 18; and Perez
v. Campbell, supra, at pp. 647-8 (p. 111 of RA), RA, Tab 19.
supra at para. 19, RA, Tab 24
s. 178(1)(a)
- 35-
107.
Argument
Parliament has practiced the cooperative federalism that is the desired
object of the division of powers by exempting provincially imposed alimony
and maintenance debts and provincial student loan debts from the release
on discharqe.l'"
108.
This Court has recognized that in the federal bankruptcy process itself, the
conditional discharge may specifically prevent a judgment debtor from
simply getting rid of a judgment for damages to suit the debtor's comfort
and convenience.l'" Instead, a conditional discharge can be ordered,
requiring that the bankrupt make ongoing payments to the trustee on
account of such a judqrnent.l'" Thus, reprehensible behaviour can be
identified, and responsibility required of a debtor in the bankruptcy
scheme, without allowing a provincial debt-collection remedy to frustrate
the purpose of bankruptcy.
(iii)
109.
Licensing
This recurring argument that licensing is a privilege conferred under
provincial
legislative jurisdiction
has already been
addressed at
paragraphs 74 to 80 above. Provincial law continues to operate in the
licensing of people who have become bankrupt, except when the
provincial licensing decision is required to be made on the basis of debt
repayment. The effect of a debt-collection consideration for provincial
licensing would be the frustration of both purposes of bankruptcy and
direct conflict with ss. '69.3 and 178(2) of the BIA, when the debtor goes
bankrupt.
178(1)(b), (c) and(g)
Kozack v. Richter, [1974]S.C.R. 832, at pp. 835-837 RA, Tab 13
H
oulden & Morawetz Bankruptcy and Insolvency Law of Canada, supra, H40(19), (20), pp. 6174.4 to 6-180.2, RA, Tab 30
103 5 5 .
104
105
iii.
110.
Argument
Re Hover
The Alberta Court of Appeal decision in Re Hover struggled with the
characterization of the provincial legislation that authorized the Alberta
Dental Association (ADA) to withhold the dental licence of Dr. Hover. In
that case Dr. Hover was found guilty of professional misconduct by the
ADA, and was required to pay ADA fines and costs of $43,632.75, failing
which his licence would be suspended. Dr. Hover filed a proposal under
the BIA, and his trustee objected to, the ADA's advice that his licence
would be suspended if Dr. Hover did not pay his fines and costs. Dr.
Hover defaulted on the debt to the ADA, his licence was suspended, and
the Alberta Court of Appeal had to determine if the Alberta Dental
Profession Act conflicted with the BIA.
111.
On that appeal, the ADA properly conceded that it could not collect on the
fines and costs following Dr. Hover's proposal under the BIA. 106 It admitted
that it could not coerce Dr. Hover into paying the fines and costs by
seeking a suspension of his licence.l'" The appellate court acknowledged
the likelihood that if the provincial power to suspend was being used to
enforce payment, bankruptcy law would prevent the suspension of the
dental licence. 108 Nevertheless, the appellate court concluded that the
actions of the ADA under the provincial statute were in relation to the
protection of the public interest and the regulation of the professional
qualifications of dentists, and not debt collection. The former purpose in
its view did not affect the purposes of bankruptcy.l'"
The fines and costs of the ADA did not survive under s, 178(1)(a) because they were not
ordered by a court
107 Re Hover, supra, at para. 38, RA, Tab 10
108 Ibid at para. 45, RA, Tab 10
109 Ibid at paras. 62-65, RA, Tab 10
106
112.
Argument
This conclusion does not bear scrutiny. The Alberta Court of Appeal would
have been correct if the suspension had been issued under ss. 60(1) of
the Dental Profession Act at the time, which provided for a general power
to suspend for unskilled practice or professional misconduct. However,
Dr. Hover was suspended under ss. 61 (2), which states: "If a person
ordered to pay a fine, costs or both under subsection (1) fails to pay the
fine or costs within the time ordered, the Board may suspend the licence,
registration or permit of that person until he or it has paid the fine of
costs."!"
113.
It is likely the case that the fines or costs themselves were imposed for the
"public protection" purposes of the provincial act, but the suspension of the
licence under s. 61 (2) was imposed for only one reason: to enforce
collection of the fines and costs (or both). Upon payment of that provable
claim the licence is restored.
114.
If Dr. Hover's dental licence was suspended pending his attending reeducation courses under s. 60 (1) of the provincial act, or if his licence
was suspended for a fixed period of time (or even permanently) as a
penalty for his professional misconduct, there would be no conflict with the
BIA. However, any valid provincial law that makes a licensing decision
contingent on the payment of a debt, as was the case in Re Hover, will
necessarily conflict with the BIA on the bankruptcy of the debtor. Its
essential purpose and effect is to enforce a provincial debt. The only way
that such a debt could survive bankruptcy would be if Parliament added it
to the s. 178(1) list of debts surviving a discharge in bankruptcy.
Otherwise, the debt collection remedy must be inoperative.
110
Ibid at pp.19-22 (Appendix to the Judgment), RA, Tab 10
Argument
Conclusion
115.
Upon the bankruptcy of a debtor, debt-collection remedies such as
registration-withholding cannot operate without both frustrating the
purposes of bankruptcy, and making dual compliance impossible. The
doctrine of paramountcy makes such provisions inoperable.
116.
407 is left with the normal remedies available to unsecured creditors,
when its debtors go bankrupt:
111
112
(a)
filing a proof of claim and receiving a dividend;
(b)
objecting to the discharge and seeking a conditional discharge that
a further payment be made to the estate in recognition of the
circumstances relating to the debt;111 and
(c)
if the debtor chooses to avail himself of the open-access highway
post-assignment, protecting itself by collecting all new tolls through
the normal collection process, including permit denial, as such
claims are not provable claims in Mr. Moore's 2007 bankruptcy.!"
see Kozack v. Richter, supra, RA, Tab 13; Houlden and Morawetz Bankruptcy and Insolvency
Law of Canada, supra at H§40(19) and (20), RA, Tab 30); and Reasons at para. 114, AR,
Vol. I, Tab 5, p. 63
Reasons at para. 114, AR, Vol. I, Tab 5, p. 63; and Moloney, supra, at para. 52, RA, Tab 16
Order Sought
PART IV - COSTS
117.
The Superintendent submits that the normal rule that costs follow the
event should apply in this case.
- 40 Order Sought
PART V - NATURE OF ORDER SOUGHT
118.
The Superintendent asks this Court to answer the constitutional question:
Yes. The operation of s. 22(4) of the 407 ETR Act would conflict
with and frustrate the purposes of the Bankruptcy and Insolvency
Act, on the bankruptcy of a 407 debtor. It is therefore inoperative in
those circumstances .
ALL OF WHICH IS RESPECTFULLY SUBMITTED
Dated at Toronto this
--------....
io" day of November 1 014./
;1~
v.:»:
A
~'-L/--
-----b~--'---'==---""':O=--'--=--------+----
Peter Southey
t(/c~ CI J i .e +1<'.(h
Michael Lema
Counsel for
Bankruptcy
the
Superintendent
of
- 41 Table of Authorities
PART VI - TABLE OF AUTHORITIES
Cited at Pages
Cases
114957 Canada Liee (Spraytech, Societe d'arrosage)
v. Hudson (Town), 2001 SCC 40, [2001] 2 S.C.R. 241
C.I.B.C. v. Cicoria 138 O.A.C. 342, 21 C.B.R.
(4th)
232 (C.A)
24
22
Caliguri and Co-Operators Insurance Association,
(1984) 48 O.R. (2d) 364 (Co.Ct.)
30, 33
Canadian Bankers Association v. Saskatchewan,
[1956] S.C.R. 31
11,14,16
8
Canadian Western Bank v. Alberta, [2007] 2 S.C.R.
Century Services Inc. v. Canada (Attorney Genera!),
[2010] 3 SCR 379
15
Cooke v. Pilot, (1996), 68 AC.W.S. (3d) 797
30
Crystalline Investments Ltd. v. Domgroup Ltd.,
[2004] 1 S.C.R. 60
10
Cushing v. Dupuy [1880] J.C.J. No.1, 5 AC. 409
9, 11
Gorquis v. Saskatchewan Government Insurance,
2011 SKQB 132
29
Hover (Re) 2005 ABCA 101
30
Husky Oil Operations Ltd. v. Canada (M.N.R.),
[1995] 3 S.C.R. 4539
Industrial Acceptance Corp. v. Lalonde,
[1952] 2 S.C.R. 109
Kozack v. Richter, [1974] S.C.R. 832
10,11,14
14
35,38
L'Union Sf. Jaques de Montreal v. Belisle,
[1874] J.C.J. NO.1
11
M & D Farm Ltd. v. Manitoba Agricultural Credit Corp.,
[1999] 2 S.C.R. 961
25
Moloney v. Alberta, 2014 ABCA 68
20,24,29,33,38
Multiple Access Ltd. v. McCutcheon, [1982]2 S.C.R. 161
25
Newfoundland and Labrador v. AbitibiBowater Inc.,
2012 SCC 67
11
Ontario (Minister of Finance) v. Clarke,
2013 ONSC 1920
29,34
- 42Table of Authorities
19,34
Perez v.Campbell (1971) 402 U.S. 637
Quebec (Attorney Generalj v. Canadian Owners and
Pilots Association (COPA), 2010 SCC 39
8
R. v. Fitzgibbon [1990] 1 S.C.R. 1005
14
Re Boucher, 2007 BCSC 644
22
29,30
Re Caporale [1970] 1 O.R. 37 (S.C.)
14
Roberge v. Bolduc [1991] 1 S.C.R. 374
Rothmans, Benson & Hedges Inc. v. Saskatchewan,
2005 SCC 13, [2005] 1 S.C.R. 188
Saskatchewan Government Insurance v. Gorguis,
2013 SKCA 32
Schreyerv. Schreyer, [2011] 2 S.C.R. 605
8
29
16,23,24
T.L. Cleary Drilling Co. (Trustee of) v. Beaver Trucking Ltd.,
[1959] S.C.R. 311
.
14
Vachon v. Canada (E.I.C.) [1985] 2 S.C.R. 417
14
Zahara v. Minister of Highways for Alberta
(1965), 51 W.W.R. 289 (Alta. S.C.)
30
th
Zemlak v. Zemlak, (1987) 42 D.L.R.(4
)
395
18
Secondary Sources
Houlden and Morawetz (Bankruptcy Law of Canada) Janice Sarra, loose-leaf edition, F138 "Debts released
by bankruptcy"
21,32,35,38
CANADA
CONSOLIDAnON
CODIFICATION
Bankruptcy and
Insolvency Act
Loi sur la faillite et
linsolvabilite
RS.C., 1985, c. B-3
L.R.C. (1985), ch. B-3
Current to October 27, 2014
Ajour au 27 octobre 2014
Last amended on April I, 2013
Derniere modification Ie I avril 20 13
Published by the Minister of Justice at the following address:
http://laws-Iois.justice.gc.ca
Publie par le ministre de la Justice a l'adresse suivante :
http://lois-Iawsjustice.gc.ca
Fail/de et insolvabilite - 27 octobre 2014
and file a copy of the documents referred to in
paragraphs (b) and (c) in the court.
Notices, etc., to
be forwarded to
Superintendent
Duty oftrustee
on expiration of
licence or
removal
(2) The trustee shall forward promptly to the
Superintendent copies of all notices, reports
and statements sent by him to the creditors and,
when required, copies of such other documents
as the Superintendent may specify.
(2) Le syndic expedie promptement au surintendant des copies de tous avis, rapports et releves adresses par lui aux creanciers et, lorsqu'il en est requis, des copies de tous autres
documents que Ie surintendant peut specifier.
R.S., 1985, c. B-3, s. 28; 1992, c. 1, s. 12, c. 27, s. 11;
2005, c. 47, s. 21.
L.R (1985), ch. B-3, art. 28; 1992, ch. 1, art. 12, ch. 27, art.
11; 2005, ch. 47, art. 21.
29. (1) Where
(a) the licence of a trustee has been can-
celled or suspended, or has ceased to be valid
by reason of failure to pay fees,
(b) a trustee has been removed from continuing the administration of an estate, or
(c) a trustee dies or becomes incapacitated,
the trustee or the legal representative of the
trustee shall, within such time as is fixed by the
Superintendent, prepare and forward to the Superintendent a detailed financial statement of
the receipts and disbursements together with a
list of and report on the unadministered property of every estate under the trustee's administration for which the trustee has not been discharged, and shall forward to such other trustee
as may be appointed in the trustee's stead or,
pending the appointment of the other trustee, to
the official receiver all the remaining property
of every estate under the trustee's administration together with all the books, records and
documents relating thereto.
29. (1) En cas d' annulation, notamment
pour defaut de paiement des droits, ou de suspension de sa licence, de revocation, de deces
ou d'empechement, le syndic, ou son representant legal, fait parvenir au surintendant, dans le
delai fixe par celui-ci, un etat financier detaille
des recettes et debours, avec inventaire des
biens non liquides de chaque actif sous son administration et a l'egard desquels il n'a pas ete
libere, avec un rapport sur de tels biens; il fait
parvenir au syndic qui peut etre nomme a sa
place, ou en attendant la nomination d'un syndic, au sequestre officiel tout Ie reliquat des
biens de chaque actif sous son administration,
ainsi que tous livres, registres et documents s'y
rapportant.
Obligations du
syndic it
I'expiration de
sa licence ou it
sa revocation
(2) [J\broge,2005,ch.47, art. 22]
(2) [Repealed, 2005, c. 47, s. 22]
Powers
exercisable by
trustee with
permission of
inspectors
Avis, etc. sont
communiques au
surintendant
RS., 1985, c. B-3, s. 29; 1997, c. 12, s. 21; 2005, c. 47, s.
L.R (1985), ch. B-3, art. 29; 1997, ch. 12, art. 21; 2005, ch.
22.
47, art. 22.
30. (1) The trustee may, with the permission of the inspectors, do all or any of the following things:
30. (1) J\ vee la permission des inspecteurs,
le syndic peut:
a) vendre ou autrement aliener, a tel prix ou
moyennant telle autre contrepartie que
peuvent approuver les inspecteurs, tous les
biens ou une partie des biens du failli, y
compris l'achalandage, s'il en est, ainsi que
les creances comptables echues ou a echoir
au credit du faiIli, par soumission, par enchere publique ou de gre a gre, avec pouvoir
de transferer la totalite de ces biens et
creances a une personne ou a une compagnie, ou de les vendre par lots;
(a) sell or otherwise dispose of for such
price or other consideration as the inspectors
may approve all or any part of the property
of the bankrupt, including the goodwill of
the business, if any, and the book debts due
or growing due to the bankrupt, by tender,
public auction or private contract, with power to transfer the whole thereof to any person
or company, or to sell the same in parcels;
(b) lease any real property or immovable;
b) donner
reels;
35
a bail des immeubles ou des biens
Pouvoirs du
syndic avec la
permission des
inspecteurs
Bankruptcy and Insolvency - October 27, 2014
(c) carry on the business of the bankrupt, in
c) continuer Ie commerce du failli, dans la
mesure ou la chose peut etre necessaire pour
la liquidation avantageuse de l' actif;
so far as may be necessary for the beneficial
administration of the estate of the bankrupt;
(d) bring, institute or defend any action or
d) intenter ou contester toute action ou autre
procedure judiciaire se rapportant aux biens
du failli;
other legal proceeding relating to the property of the bankrupt;
e) employer un avocat ou autre representant
pour engager des procedures ou pour entreprendre toute affaire que les inspecteurs
peuvent approuver;
(e) employ a barrister or solicitor or, in the
Province of Quebec, an advocate, or employ
any other representative, to take any proceedings or do any business that may be
sanctioned by the inspectors;
f) accepter comme contrepartie pour la vente
de tout bien du failli une somme d'argent
payable a une date future, sous reserve des
stipulations que les inspecteurs jugent convenables quant a la garantie ou a d'autres
egards;
if) accept as the consideration for the sale of
any property of the bankrupt a sum of money
payable at a future time, subject to such stipulations as to security and otherwise as the
inspectors think fit;
(g) incur obligations, borrow money and
give security on any property of the bankrupt
by mortgage, hypothec, charge, lien, assignment, pledge or otherwise, such obligations
and money borrowed to be discharged or repaid with interest out of the property of the
bankrupt in priority to the claims of the creditors;
g) contracter des obligations, emprunter de
l'argent et fournir des garanties sur tout bien
du failli par voie d'hypotheque, de charge, de
privilege, de cession, de nantissement ou autrement, telles obligations devant etre liberees et tel argent emprunte devant etre rembourse avec interet sur les biens du failli,
avec priorite sur les reclamations des creanciers;
(h) compromise and settle any debts owing
h) transiger sur toute dette due au failli et la
to the bankrupt;
(i) compromise any claim made
against the estate;
regler;
by or
i) transiger sur toute reclamation faite par ou
contre I' actif;
(j) divide in its existing form among the
creditors, according to its estimated value,
any property that from its peculiar nature or
other special circumstances cannot be readily
or advantageously sold;
j) partager en nature, parmi les creanciers et
selon sa valeur estimative, un bien qui, a
cause de sa nature particuliere ou d'autres
circonstances speciales, ne peut etre promptement ni avantageusement vendu;
(k) elect to retain for the whole part of its
unexpired term, or to assign, surrender, disclaim or resiliate any lease of, or other temporary interest or right in, any property of the
bankrupt; and
k) decider de retenir, durant la totalite ou durant une partie de la periode restant a courir,
ou de ceder, abandonner ou resilier tout bail
ou autre droit ou interet provisoire se rattachant aun bien du failli;
(I) appoint the bankrupt to aid in administering the estate of the bankrupt in such manner
and on such terms as the inspectors may direct.
Permission
limited to
particular thing
or class
(2) The permission given for the purposes of
subsection (1) is not a general permission to do
all or any of the things mentioned in that subsection, but is only a permission to do the particular thing or things or class of thing or things
that the permission specifies.
I) nommer Ie failli pour aider a l'administration de l'actif de la maniere et aux conditions
que les inspecteurs peuvent ordonner.
(2) La permission n'est pas une permission
generale visant tous les pouvoirs mentionnes,
mais est restreinte a un ou plusieurs pouvoirs
precises, ou a une categorie de pouvoirs preci-
ses,
36
Portee de la
permission
Fail/ite et insolvabilite - 27 octobre 2014
If no inspectors
(3) Ifno inspectors are appointed, the trustee
may do all or any of the things referred to in
subsection (1).
(3) Si aucun inspecteur n' est nomme, Ie syndic peut prendre de son propre chef les mesures
visees au paragraphe (1).
Absence
d'inspecteur
Sal e or disposal
to related
persons
(4) The trustee may sell or otherwise dispose of any of the bankrupt's property to a person who is related to the bankrupt only with the
court's authorization.
(4) Le syndic ne peut disposer - notamment par vente - les biens du failli en faveur
d'une personne liee a celui-ci qu'avec l'autorisation du tribunal.
Disposition en
faveur de
personnes liees
Related persons
(5) For the purpose of subsection (4), in the
case of a bankrupt other than an individual, a
person who is related to the bankrupt includes
(5) Pour l'application du paragraphe (4), les
personnes ci-apres sont considerees comme
liees au failli qui n'est pas une personne
physique:
Personnes liees
(a) a director or officer of the bankrupt;
a) Ie dirigeant ou l'administrateur de celui-
(b) a person who has or has had, directly or
ci;
indirectly, control in fact of the bankrupt;
and
b) la personne qui, directement ou indirectement, en a ou en a eu Ie controle de fait;
(c) a person who is related to a person described in paragraph (a) or (b).
Factors to be
considered
(6) In deciding whether to grant the authorization, the court is to consider, among other
things,
c) la personne liee
aux alineas a) ou b).
a toute
personne visee
(6) Pour decider s'il accorde l'autorisation,
Ie tribunal prend en consideration, entre autres,
les facteurs suivants :
(a) whether the process leading to the pro-
a) la justification des circonstances ayant
posed sale or disposition of the property was
reasonable in the circumstances;
mene au projet de disposition;
(b) the extent to which the creditors were
b) la suffisance des consultations menees
aupres des creanciers;
consulted;
c) les effets du projet de disposition sur les
(c) the effects ofthe proposed sale or dispo-
droits de tout interesse, notamment les creanciers;
sition on creditors and other interested parties;
d). Ie caractere juste et raisonnable de la
contrepartie recue pour les biens compte tenu
de leur valeur marchande;
(d) whether the consideration to be received
for the property is reasonable and fair, taking
into account the market value of the property;
e) la suffisance et I' authenticite des efforts
deployes pour disposer des biens en faveur
d'une personne qui n'est pas liee au failli;
(e) whether good faith efforts were made to
sell or otherwise dispose of the property to
persons who are not related to the bankrupt;
and
(j) whether the consideration to be received
is superior to the consideration that would be
received under any other offer made in accordance with the process leading to the proposed sale or disposition of the property.
Facteurs it
prendre en
consideration
j) Ie caractere plus avantageux de la contrepartie offerte pour les biens par rapport a
celIe qui decoulerait de toute autre offre recue dans Ie cadre du projet de disposition.
L.R. (1985), ch. B-3, art. 30; 1997, ch. 12, art. 22(F); 2004,
ch. 25, art. 22;2005, ch. 47, art. 23; 2007, ch. 36, art. 10.
R.S., 1985, c. B-3, s. 30; 1997, c. 12, s. 22(F); 2004, c. 25,
s. 22; 2005, c. 47, s. 23; 2007, c. 36, s. 10.
Borrowing
powers witb
permission of
court
31. (1) With the permission of the court, an
interim receiver, a receiver within the meaning
of subsection 243(2) or a trustee may make
necessary or advisable advances, incur obliga-
31. (1) Avec la permission du tribunal, Ie
sequestre interimaire, Ie sequestre au sens du
paragraphe 243(2) ou Ie syndic peut consentir
des avances necessaires ou opportunes,
37
Pouvoir
d'emprunter
avec la
permission du
tribunal
the absence of agreement with the debtor such
amount as may be approved by the court.
debiteur, Ie montant que Ie tribunal peut approuver.
Successive
trustees
(4) In the case of two or more trustees acting
in succession, the remuneration shall be apportioned between the trustees in accordance with
the services rendered by each, and in the absence of agreement between the trustees the
court shall determine the amount payable to
each.
(4) Si plusieurs syndics agissent les uns en
succession des autres, la remuneration est repartie entre les syndics selon les services que
chacun d'eux a rendus, et, en l'absence d'une
entente entre les syndics, Ie tribunal determine
Ie montant payable a chacun d'eux.
Court may
(5) On application by the trustee, a creditor
or the debtor and on notice to such parties as
the court may direct, the court may make an order increasing or reducing the remuneration.
(5) A la demande du syndic, d'un creancier
ou du debiteur, et apres avis aux parties que
peut ordonner Ie tribunal, ce demier peut rendre
une ordonnance augmentant ou reduisant la remuneration.
increase or
reduce
RS., c. B-3, s. 21.
Syndics agissant
l'un apres l'autre
Le tribunal peut
augmenter ou
reduire
S.R, ch. B-3, art. 21.
Discharge ofTrustee
Liberation du syndic
Disposal of
unrealizable
property
40. (1) Any property of a bankrupt that is
listed in the statement of affairs referred to in
paragraph l58(d) or otherwise disclosed to the
trustee before the bankrupt's discharge and that
is found incapable of realization must be returned to the bankrupt before the trustee's application for discharge, but if inspectors have
been appointed, the trustee may do so only with
their permission.
40. (1) Tout bien qui, avant la liberation du
failli, est revele au syndic - notamment par
mention dans Ie bilan prevu a l'alinea l58d)et qui est trouve non realisable est retourne au
failli avant la demande de liberation du syndic.
Si des inspecteurs ont ete nommes, ce demier
ne peut retoumer Ie bien qu'avec leur permission.
Alienation des
biens non
realisables
Final disposition
of property
(2) Where a trustee is unable to dispose of
any property as provided in this section, the
court may make such order as it may consider
necessary.
(2) Lorsqu'un syndic est incapable de disposer d'un bien selon Ie present article, Ie tribunal
peut rendre l'ordonnance qu'iljuge necessaire,
Alienation finale
des biens
L.R. (1985), ch. B-3, art. 40; 2005, ch. 47, art. 29.
RS., 1985, c. B-3, s. 40; 2005, c. 47, s. 29.
Application to
court
41. (1) When a trustee has completed the
duties required of him with respect to the administration of the property of a bankrupt, he
shall apply to the court for a discharge.
41. (1) Lorsqu'un syndic a complete l'execution des fonctions dont il a ete charge dans
l'administration des biens d'un failli, il adresse
une demande de liberation au tribunal.
Discharge of
trustee
(2) The court may discharge a trustee with
respect to any estate on full administration
thereof or, for sufficient cause, before full administration.
(2) Le tribunal peut liberer un syndic a
l'egard d'un actif quelconque, lorsque l'administration entiere de cet actif est terminee ou,
pour cause suffisante, avant qu'elle soit terminee.
When another
trustee has been
appointed
(3) A trustee when replaced by another
trustee is entitled to be discharged if he has accounted to the satisfaction of the inspectors and
the court for all property that came to his
hands, and a period of three months has elapsed
after the date of the replacement without any
undisposed of claim or objection having been
made by the bankrupt or any creditor.
(3) Lorsqu'il est remplace par un autre syndic, Ie syndic a Ie droit d'etre Iibere s'il a rendu
compte, a la satisfaction des inspecteurs et du
tribunal, de tous les biens qui ont ete mis en sa
possession et si une periode de trois mois s'est
ecoulee apres la date de cette substitution, sans
qu'il y ait eu de reclamation ou d'opposition
non reglee de la part du failli ou d'un creancier,
42
Demandeau
tribunal
Liberation du
syndic
Nomination
d'un autre
syndic
Bankruptcy and lnsolvency- October 27,2014
the consumer debtor and to the official receiver.
effet au debiteur consommateur et au sequestre
officieI.
(2) Subsection (1) does not apply in respect
of a consumer debtor who has refused or neglected to receive counselling provided under
paragraph 66.13(2)(b).
(2) Le paragraphe (1) ne s'applique pas si Ie
debiteur consommateur a refuse ou omis de se
prevaloir des consultations offertes aux termes
de l'alinea 66. 13(2)b).
1992, c. 27, s. 32;2005, c.47,s. 56.
1992,ch. 27,art. 32;2005,ch.47,art. 56.
66.39 The form and content of the administrator's accounts, the procedure for the preparation and taxation of those accounts and the procedure for the discharge of the administrator
shall be as prescribed.
66.39 La forme et Ie contenu des comptes de
l'administrateur ainsi que la procedure a suivre
pour leur preparation et leur taxation et pour la
liberation de l'administrateur sont determines
par les Regles generales.
1992, c. 27, s. 32.
1992, ch.27, art. 32.
Act to apply
66.4 (1) All the provisions of this Act, except Division I of this Part, in so far as they are
applicable, apply, with such modifications as
the circumstances require, to consumer proposals.
66.4 (1) Toutes les dispositions de la presente loi, sauf la section I de la presente partie,
dans la mesure OU elles sont applicables, s'appliquent, compte tenu des adaptations de circonstance, aux propositions de consommateur.
Application de
la presente loi
Where consumer
debtor is
bankrupt
(2) Where a consumer proposal is made by a
consumer debtor who is a bankrupt,
(2) Dans Ie cas d'une proposition
consommateur faite par un failli :
Application de
la presente loi
Effect if
counselling
refused
Administrator's
accounts,
discharge
de
Refus de se
prevaloir des
consultations
Comptes et
liberation de
I' administrateur
a) la proposition doit etre approuvee par les
inspecteurs, Ie cas echeant, avant que toute
autre mesure ne soit prise a son egard;
(a) the consumer proposal must be approved
by the inspectors, if any, before any further
action is taken thereon;
(b) the consumer debtor must have obtained
the assistance of a trustee who shall act as
administrator of the proposal in the preparation and execution thereof;
.b) Ie debiteur consommateur doit avoir obte-
(c) the time with respect to which the claims
c) Ie moment par rapport auquel les reclamations des creanciers sont determinees est
celui ou Ie debiteur consommateur est devenu un fail1i;
nu les services d'un syndic pour agir comme
administrateur dans le cadre de la preparation et de I' execution de la proposition;
of creditors shall be determined is the time at
which the consumer debtor became
bankrupt; and
d) l'approbation - effective ou presumee
- de la proposition par le tribunal a pour effet d'annuler la faillite et de reattribuer au
debiteur consommateur, ou atoute autre personne que Ie tribunal peut approuver, Ie
droit, Ie titre et l'interet complets du syndic
aux biens du debiteur, amoins que les conditions de la proposition ne soient a l'effet
contraire.
(d) the approval or deemed approval by the
court of the consumer proposal operates to
annul the bankruptcy and to revest in the
consumer debtor, or in such other person as
the court may approve, all the right, title and
interest of the trustee in the property of the
consumer debtor, unless the terms of the
consumer proposal otherwise provide.
1992, c. 27, s. 32; 1997, c. 12,s. 58.
1992, ch. 27,art. 32; 1997,ch. 12,art.58.
Property of
bankrupt
PART IV
PARTIE IV
PROPERTY OF THE BANKRUPT
BIENS DU FAILLI
67. (1) The property of a bankrupt divisible
among his creditors shall not comprise
67. (1) Les biens d'un failli, constituant Ie
patrimoine attribue a ses creanciers, ne comprennent pas les biens suivants:
(a) property held by the bankrupt in trust for
any other person;
106
Biens du failli
Faillite et insolvabilite - 27 octobre 2014
(b) any property that as against the bankrupt
a) les biens detenus par le failli en fiducie
pour toute autre personne;
is exempt from execution or seizure under
any laws applicable in the province within
which the property is situated and within
which the bankrupt resides;
b) les biens qui, selon Ie droit applicable
dans la province dans laquelle ils sont situes
et ou reside Ie failli, ne peuvent faire l'objet
d'une mesure d'execution ou de saisie contre
celui-ci;
(b. I) goods and services tax credit payments
that are made in prescribed circumstances to
the bankrupt and that are not property referred to in paragraph (a) or (b);
b.I) dans les circonstances prescrites, les
paiements qui sont faits au failli au titre de
credits de taxe sur les produits et services et
qui ne sont pas des biens vises aux alineas a)
ou b);
(b.2) prescribed payments relating to the es-
sential needs of an individual that are made
in prescribed circumstances to the bankrupt
and that are not property referred to in paragraph (a) or (b); or
b.2) dans les circonstances prescrites, les
paiements prescrits qui sont faits au failli relativement aux besoins essentiels de personnes physiques et qui ne sont pas des biens
vises aux alineas a) ou b);
(b.3) without restricting the generality of
paragraph (b), property in a registered retirement savings plan or a registered retirement
income fund, as those expressions are defined in the Income Tax Act, or in any prescribed plan, other than property contributed
to any such plan or fund in the 12 months before the date of bankruptcy,
b.3) sans restreindre la portee generale de
l'alinea b), les biens detenus dans un regime
enregistre d' epargne-retraite ou un fonds enregistre de revenu de retraite, au sens de la
Loi de l'impot sur Ie revenu, ou dans tout regime prescrit, a l'exception des cotisations
au regime ou au fonds effectuees au cours
des douze mois precedant la date de la
faillite,
but it shall comprise
(c) all property wherever situated of the
bankrupt at the date of the bankruptcy or that
may be acquired by or devolve on the
bankrupt before their discharge, including
any refund owing to the bankrupt under the
Income Tax Act in respect of the calendar
year - or the fiscal year of the bankrupt if it
is different from the calendar year - in
which the bankrupt became a bankrupt, except the portion that
mais ils comprennent:
c) tous les biens, OU qu'ils soient situes, qui
appartiennent au failli a la date de la faillite,
ou qu' il peut acquerir ou qui peuvent lui etre
devolus avant sa liberation, y compris les
remboursements qui lui sont dus au titre de
la Loi de l'impot sur Ie revenu relativement a
l'annee civile - ou a l'exercice lorsque celui-ci differe de l'annee civile - au cours de
laquelle il a fait faillite, mais aI' exclusion de
la partie de ces remboursements qui:
(i) is not subject to the operation of this
Act, or
(ii) in the case of a bankrupt who is the
judgment debtor named in a garnishee
summons served on Her Majesty under the
(i) soit sont des sommes soustraites
l'application de la presente loi,
Family Orders and Agreements Enforcement Assistance Act, is garnishable money
a
(ii) soit sont des sommes qui lui sont dues
et qui sont saisissables en vertu d'un bref
de saisie-arret signifie a Sa Majeste en application de la Loi d'aide l'execution des
that is payable to the bankrupt and is to be
paid under the garnishee summons, and
a
(d) such powers in or over or in respect of
the property as might have been exercised by
the bankrupt for his own benefit.
ordonnances et des ententes familiales
dans lequel il est nomme comme debiteur;
d) les pouvoirs sur des biens ou a leur egard,
qui auraient pu etre exerces par Ie failli pour
son propre benefice.
107
Deemed trusts
(2) Subject to subsection (3), notwithstanding any provision in federal or provincial legislation that has the effect of deeming property to
be held in trust for Her Majesty, property of a
bankrupt shall not be regarded as held in trust
for Her Majesty for the purpose of paragraph
(1)(a) unless it would be so regarded in the absence of that statutory provision.
(2) Sous reserve du paragraphe (3) et par derogation a toute disposition legislative federale
ou provinciale ayant pour effet d'assimiler certains biens a des biens detenus en fiducie pour
Sa Majeste, aucun des biens du failli ne peut,
pour l'application de l'alinea (1)a), etre considere comme detenu en fiducie pour Sa Majeste
si, en l'absence de la disposition legislative en
question, il ne le serait pas.
Exceptions
of amounts deemed to be held in trust under
subsection 227(4) or (4.1) of the Income Tax
Act, subsection 23(3) or (4) of the Canada Pension Plan or subsection 86(2) or (2.1) of the
Employment Insurance Act (each of which is in
this subsection referred to as a "federal provision") nor in respect of amounts deemed to be
held in trust under any law of a province that
creates a deemed trust the sole purpose of
which is to ensure remittance to Her Majesty in
right of the province of amounts deducted or
withheld under a law of the province where
(3) Le paragraphe (2) ne s'applique pas a
l' egard des montants reputes detenus en fiducie
aux termes des paragraphes 227(4) ou (4.1) de
la Loi de I 'impot sur le revenu, des paragraphes
23(3) ou (4) du Regime de pensions du Canada
ou des paragraphes 86(2) ou (2.1) de la Loi sur
I'assurance-emploi (chacun etant appele « disposition federale » au present paragraphe) ou a
l' egard des montants reputes detenus en fiducie
aux termes de toute loi d'une province creant
une fiducie presumee dans le seul but d'assurer
a Sa Majeste du chef de cette province la remise de sommes deduites ou retenues aux
termes d'une loi de cette province, dans la mesure ou, dans ce demier cas, se realise 1'une des
conditions suivantes :
(a) that law of the province imposes a tax
similar in nature to the tax imposed under the
Income Tax Act and the amounts deducted or
withheld under that law of the province are
of the same nature as the amounts referred to
in subsection 227(4) or (4.1) of the Income
Tax Act, or
a) la loi de cette province prevo it un impot
semblable, de par sa nature, a celui prevu par
la Loi de l'impot sur le revenu, et les
sommes deduites ou retenues aux termes de
la loi de cette province sont de meme nature
que celles visees aux paragraphes 227(4) ou
(4.1) de la Loi de I 'impot sur le revenu;
(b) the province is a "province providing a
comprehensive pension plan" as defmed in
subsection 3(1) of the Canada Pension Plan,
that law of the province establishes a
"provincial pension plan" as defined in that
subsection and the amounts deducted or
withheld under that law of the province are
of the same nature as' amounts referred to in
subsection 23(3) or (4) of the Canada PensionPlan,
and for the purpose of this subsection, any provision of a law of a province that creates a
deemed trust is, notwithstanding any Act of
Canada or of a province or any other law,
deemed to have the same effect and scope
against any creditor, however secured, as the
corresponding federal provision.
RS., 1985, c. B-3, s. 67; 1992, c. 27, s. 33; 1996, c. 23, s.
168; 1997, c. 12, s. 59; 1998, c. 19, s. 250; 2005, c. 47, s.
57; 2007, c. 36, s. 32.
b) cette province est «une province instituant un regime general de pensions» au
sens du paragraphe 3(1) du Regime de pensions du Canada, la loi de cette province institue un «regime provincial de pensions» au
sens de ce paragraphe, et les sommes deduites ou retenues aux termes de la loi de
cette province sont de meme nature que
celles visees aux paragraphes 23(3) ou (4) du
Regime de pensions du Canada.
Pour l'application du present paragraphe, toute
disposition de la loi provinciale qui cree une fiducie presumee est reputee avoir, a l'encontre
de tout creancier du failli et malgre tout texte
Iegislatif federal ou provincial et toute regle de
droit, la meme portee et le meme effet que la
108
Fiducies
presumees
Exceptions
disposition federale correspondante, quelle que
soit la garantie dont beneficie Ie creancier.
L.R. (1985), ch. B-3, art. 67; 1992, ch. 27, art. 33; 1996, ch.
23, art. 168; 1997, ch. 12, art. 59; 1998, ch. 19, art. 250;
2005, ch. 47, art. 57;2007, ch. 36, art. 32.
68. (1) The Superintendent shall, by directive, establish in respect of the provinces or one
or more bankruptcy districts or parts of
bankruptcy districts, the standards for determining the surplus income of an individual
bankrupt and the amount that a bankrupt who
has surplus income is required to pay to the estate of the bankrupt.
68. (1) Le surintendant fixe, par instruction,
pour les provinces ou pour un ou plusieurs districts ou parties de district, des normes visant
l' etablissement du revenu excedentaire du failli
qui estune personne physique et de la somme
que celui-ci doit verser a l'actif de la faillite.
Definitions
(2) The following definitions apply in this
section.
(2) Les definitions qui suivent s'appliquent
au present article.
Definitions
"surplus
income"
« revenu
"surplus income" means the portion of a
bankrupt individual's total income that exceeds
that which is necessary to enable the bankrupt
individual to maintain a reasonable standard of
living, having regard to the applicable standards established under subsection (1).
«revenu excedentaire » Le montant du revenu
total d'une personne physique en faillite qui excede ce qui est necessaire au maintien d'un niveau de vie raisonnable, compte tenu des
normes applicables mentionnees au paragraphe
(1).
« revenu
"total income"
«revenu total» Malgre les alineas 67(1)b) et
b.3), revenus de toute nature ou source gagnes
ou recus par le failli entre la date de sa faillite
et celIe de sa liberation, y compris les sommes
recues entre ces dates atitre de dommages-interets pour congediement abusif ou de reglement
en matiere de parite salariale, ou en vertu d'une
loi federale ou provinciale relative aux accidents du travail. Ne sont pas visees par la presente definition les sommes inattendues que le
failli recoit entre ces dates, notamment par donation, legs ou succession.
« revenu total »
"total income"
(3) Le syndic decide, conformement aux
normes applicables et compte tenu des charges
familiales et de la situation personnelle du
failli, si celui-ci a un revenu excedentaire, II
prend notamment cette decision lorsqu'il a
connaissance de tout changement important de
la situation financiere du failli et lorsqu'il est
tenu de preparer Ie rapport vise au paragraphe
170(1).
Decision du
syndic quant au
revenu
excedentaire
Directives re
surplus income
excedentaire »
"total income"
« revenu total »
(a) includes, despite paragraphs 67(1)(b)
and (b.3), a bankrupt'S revenues of whatever
nature or from whatever source that are
earned or received by the bankrupt between
the date of the bankruptcy and the date of the
bankrupt's discharge, including those received as damages for wrongful dismissal,
received as a pay equity settlement or received under an Act of Parliament, or of the
legislature of a province, that relates to
workers' compensation; but
Instructionsdu
surintendantrevenu
excedentaire
excedentaire »
"surplus
income"
(b) does not include any amounts received
by the bankrupt between the date of the
bankruptcy and the date of the bankrupt's
discharge, as a gift, a legacy or an inheritance or as any other windfall.
Determination
of trustee re
surplus income
(3) The trustee shall, having regard to the
applicable standards and to the personal and
family situation of the bankrupt, determine
whether the bankrupt has surplus income. The
determination must also be made
(a) whenever the trustee becomes aware ofa
material change in the bankrupt'S fmancial
situation; and
(b) whenever the trustee is required to prepare a report referred to in subsection 170(1).
109
Duties of trustee
relating to
determination
(4) Whenever the trustee is required to determine whether the bankrupt has surplus income, the trustee shall
(a) if the trustee determines that there is surplus income,
(i) fix, having regard to the applicable
standards, the amount that the bankrupt is
required to pay to the estate of the
bankrupt,
(4) II avise, de la maniere prescrite, le sequestre officiel et les creanciers qui en font la
demande de sa conclusion et, s'il conclut que le
failli a un revenu excedentaire, il fixe, conformement aux normes applicables, la somme que
celui-ci doit verser a l'actif de la faillite et
prend les mesures indiquees pour qu' il s' execute.
Obligationsdu
syndic par suite
de la decision
(ii) inform, in the prescribed manner, the
official receiver, and every creditor who
has requested such information, of the
amount fixed under subparagraph (i), and
(iii) take reasonable measures to ensure
that the bankrupt complies with the requirement to pay; and
(b) if the trustee determines that there is no
surplus income, inform, in the prescribed
manner, the official receiver, and every creditor who has requested such information, of
that determination.
Official receiver
recommendation
Tmstee may fix
another amount
(5) If the official receiver determines that
the amount required to be paid by the bankrupt
is substantially not in accordance with the applicable standards, the official receiver shall recommend to the trustee and to the bankrupt an
amount required to be paid that the official receiver determines is in accordance with the applicable standards.
(5.1) On receipt of the official receiver's
recommendation, the trustee may fix, having
regard to the applicable standards, another
amount as the amount that the bankrupt is required to pay to the estate of the bankrupt, and
if the trustee does so, the trustee shall
(a) inform the official receiver and every
creditor, in the prescribed manner, of the
amount fixed under this subsection; and
(5) S'il conclut que Ie montant de la somme
averser par le failli differe sensiblement de celui qu'entrainerait l'application des normes visees au paragraphe (1), le sequestre officiel recommande au syndic et au failli le montant
qu'il estime conforme a celles-ci.
(5.1) Sur reception de la recommandation du
sequestre officiel, le syndic peut, conformement aux normes applicables, fixer a un autre
montant la somme que le failli doit verser a
l'actif de la faillite et, le cas echeant, en avise le
sequestre officiel et les creanciers de la maniere
preserite et prend les mesures indiquees pour
que le failli s'execute.
Recommandation du sequestre
officiel
Etablissement
d'un autre
montant Ii verser
(b) take reasonable measures to ensure that
the bankrupt complies with the requirement
to pay.
Tmsteemay
reqnest
mediation
(6) If the trustee and the bankrupt are not in
agreement with the amount that the bankrupt is
required to pay under subsection (4) or (5.1),
the trustee shall, without delay, in the prescribed form, send to the official receiver a request that the matter be determined by media-
(6) A defaut d'entente avec Ie failli sur le
montant de la somme a verser en application
des paragraphes (4) et (5.1), Ie syndic transmet
sans delai au sequestre officieI, en la forme
prescrite, une demande de mediation et en expedie une copie au failli.
llO
Demandede
mediationpar le
syndic
F ail/ite et insolvabilite - 27 octobre 2014
tion and send a copy of the request to the
bankrupt.
Creditor may
request
mediation
(7) On a creditor's request made within 30
days after the day on which the trustee informed the creditor of the amount fixed under
subsection (4) or (5.1), the trustee shall, within
five days after the day on which the 30-day period ends, send to the official receiver a request, in the prescribed form, that the matter of
the amount that the bankrupt is required to pay
be determined by mediation and send a copy of
the request to the bankrupt and the creditor.
(7) Sur demande du creancier faite dans les
trente jours suivant la date oil le syndic l'avise
qu'un montant a ete fixe en application des paragraphes (4) ou (5.1), celui-ci transmet au sequestre officiel, dans les cinq jours suivant
l'expiration des trente jours, une demande de
mediation en la forme prescrite relativement au
montant de la somme que le failli doit verser a
l' actif, et en expedie une copie au failli et au
creancier,
Demande de
mediation par Ie
creancier
Mediation
procedure
(8) A mediation shall be in accordance with
prescribed procedures.
(8) La procedure de mediation est fixee par
les Regles generales.
Procedure
prescrite
File
(9) Documents contained in a file on the mediation of a matter under this section form part
of the records referred to in subsection 11.1(2).
(9) Les documents constituant le dossier de
mediation font partie des dossiers vises au paragraphe 11.1(2).
Dossier
Application to
court to fix
amount
(10) The trustee may, in any of the following circumstances - and shall apply if requested to do so by the official receiver in the circumstances referred to in paragraph (a) apply to the court to fix, by order, in accordance with the applicable standards, and having
regard to the personal and family situation of
the bankrupt, the amount that the bankrupt is
required to pay to the estate of the bankrupt:
(10) Le syndic peut, d'office si l'une ou
l'autre des conditions ci-apres sont remplies, ou
doit, sur demande du sequestre officiel dans le
cas prevu a l'alinea a), demander au tribunal
d'etablir, par ordonnance, le montant du revenu
que Ie failli doit verser a l'actif de la faillite,
compte tenu des normes fixees par le surintendant et des charges familiales et de la situation
personnelle du failli :
Etablissement
par Ie tribunal
(a) if the trustee has not implemented a rec-
a) le syndic ne met pas en eeuvre la recommandation du sequestre officiel;
ommendation made by the official receiver
under subsection (5);
b) il y a echec de la mediation;
(b) if the matter submitted to mediation has
c) le failli a omis d'effectuer ses paiements.
not been resolved by the mediation; or
(c) if the bankrupt has failed to comply with
the requirement to pay as determined under
this section.
Fixing fair and
reasonable
remuneration in
the case of
related persons
(11) The court may fix an amount that is fair
and reasonable
(a) as salary, wages or other remuneration
for the services being performed by a
bankrupt for a person employing the
bankrupt, or
(b) as payment for or commission in respect
of any services being performed by a
bankrupt for a person,
where the person is related to the bankrupt, and
the court may, by order, determine the part of
the salary, wages or other remuneration, or the
part of the payment or commission, that shall
be paid to the trustee on the basis of the amount
(11) Le tribunal peut fixer un montant equitable a titre de traitement, salaire ou autre remuneration pour les services rendus par Ie failli
a un employeur ou a titre de paiement ou de
commission pour services rendus a un tiers si
ces personnes sont liees au failli; il peut etablir,
par ordonnance, le montant a verser au syndic
sur la base du montant fixe, sauf s'il estime que
les services rendus n' ont beneficie qu' au failli
et n' ont pas procure un benefice' important a
son employeur ou au tiers.
111
Fixation par Ie
tribunal
Bankruptcy and Insolvency - October 27,2014
so fixed by the court, unless it appears to the
court that the services have been performed for
the benefit of the bankrupt and are not of any
substantial benefit to the person for whom they
were performed.
Modification of
order
(12) On the application of any interested
person, the court may, at any time, amend an
order made under this section to take into account material changes that have occurred in
the financial situation of the bankrupt.
(12) Sur demande de tout interesse, Ie tribunal peut modifier I'ordonnance rendue au titre
du present article pour tenir compte de tout
changement important de la situation financiere
du failli.
Default by other
person
(13) An order of the court made under this
section may be served on a person from whom
the bankrupt is entitled to receive money and,
in such case,
(13) Lorsqu'une ordonnance rendue au titre
du present article est signifiee a une personne
qui doit une somme d'argent au failli, elle est
tenue de s'y conformer; si elle ne s'y conforme
pas, Ie tribunal peut, sur demande du syndic, lui
ordonner de verser la somme au syndic.
Debiteur du
failli
(a) the order binds the person to pay to the
estate of the bankrupt the amount fixed by
the order; and
Modification de
r ordonnance
(b) if the person fails to comply with the
terms of the order, the court may, on the application of the trustee, order the person to
pay the trustee the amount of money that the
estate of the bankrupt would have received
had the person complied with the terms of
the order.
Application is a
proceeding
(14) For the purposes of section 38, an application referred to in subsection (10) is
deemed to be a proceeding for the benefit of the
estate.
(14) La demande presentee au tribunal au
titre du paragraphe (10) constitue, pour l'application de l'article 38, une procedure a l'avantage de l'actif de la faillite.
Presornption
Property
included for
enforcement
purposes
(15) For the purpose of this section, a requirement that a bankrupt pay an amount to the
estate is enforceable against the bankrupt's total income.
(15) Pour l'application du present article, la
somme a verser a l'actif de la faillite peut etre
recouvree par voie d' execution contre le revenu
total du failli.
Biens pouvant
faire I' objet
d'une execution
(16) If an opposition to the automatic discharge of a bankrupt individual who is required
to pay an amount to the estate is filed, the
bankrupt's obligation under this section ceases
on the day on which the bankrupt would have
been automatically discharged had the opposition not been filed, but nothing in this subsection precludes the court from determining that
the bankrupt is required to pay to the estate an
amount that the court considers appropriate.
(16) L'obligation du failli qui est une personne physique de faire des versements a l'actif
de la faillite au titre du present article cesse, en
cas d'opposition a sa liberation d'office, le jour
ou il aurait ete Iibere n'el1t ete l'avis d'opposition, rien n'empechant toutefois le tribunal de
reconduire l'obligation pour la somme qu'il estime indiquee,
Cessation des
versements
When obligation
to pay ceases
.
L.R (1985), ch. B-3, art. 68; 1992, ch. 27, art. 34; 1997, ch.
12, art. 60; 2005, ch.47, art. 58;2007, ch. 36, art. 33.
RS., 1985, c. B-3, s. 68; 1992, c. 27, s. 34; 1997, c. 12, s.
60;2005,c.47,s.58;2007,c.36,s.33.
Assignment of
wages
68.1 (1) An assignment of existing or future
wages made by a debtor before the debtor became bankrupt is of no effect in respect of
wages earned after the bankruptcy.
68.1 (1) La cession de salaires presents ou
futurs faite par le debiteur avant qu'il ne devienne un failli est sans effet sur les salaires gagnes apres sa faillite.
112
Cession de
salaire
Assignment of
book debts
Stay of
proceedings notice of
intention
(2) An assignment of existing or future
amounts receivable as payment for or commission or professional fees in respect of services
rendered by a debtor who is an individual before the debtor became bankrupt is of no effect
in respect of such amounts earned or generated
after the bankruptcy.
(2) La cession de sommes - echues ou a
percevoir - a titre de paiement, de commission ou d'honoraires professionnels pour la
prestation de services, faite par un debiteur qui
est une personne physique avant qu'il ne fasse
faillite, est sans effet sur les sommes de meme
provenance qui sont gagnees apres sa faillite.
1992, c. 27, s. 35; 1997, c. 12, s. 61; 2005, c. 47, s. 59.
1992,ch. 27,art. 35; 1997,ch. 12, art. 61;2005, ch. 47, art.
59.
STAY OF PROCEEDINGS
SUSPENSION DES PROCEDURES
69. (1) Subject to subsections (2) and (3)
and sections 69.4, 69.5 and 69.6, on the filing
of a notice of intention under section 50.4 by an
insolvent person,
69. (1) Sous reserve des paragraphes (2) et
(3) et des articles 69.4, 69.5 et 69.6, entre Ia
date du depot par une personne insolvabled'un
avis d'intention aux termes de l'article 50.4 et
la date du depot, aux termes du paragraphe
62(1), d'une proposition relative a cette personne ou la date a laquelle celle-ci devient un
failli:
(a) no creditor has any remedy against the
insolvent person or the insolvent person's
property, or shall commence or continue any
action, execution or other proceedings, for
the recovery of a claim provable in bankruptcy,
a) les creanciers n'ont aucun recours contre
la personne insolvable ou contre ses biens et
ne peuvent intenter ou continuer aucune action, execution ou autre procedure en vue du
recouvrement de reclamations prouvables en
matiere de faillite;
(b) no provision of a security agreement between the insolvent person and a secured
creditor that provides, in substance, that on
(i) the insolvent person's insolvency,
b) est sans effet toute disposition d'un
contrat de garantie conclu entre la personne
insolvable et un creancier garanti qui prevoit,
pour l'essentiel, que celle-ci, des qu'elle devient insolvable, qu'elle manque a un engagement prevu par Ie contrat de garantie ou
qu'elle depose un avis d'intention aux termes
de Particle 50.4, est dechue des droits qu'elle
aurait normalement de se servir des avoirs
vises par Ie contrat de garantie ou de faire
d'autres operations aleur egard;
(ii) the default by the insolvent person of
an obligation under the security agreement, or
(iii) the filing by the insolvent person of a
notice of intention under section 50.4,
the insolvent person ceases to have such
rights to use or deal with assets secured under the agreement as he would otherwise
have, has any force or effect,
(c) Her Majesty in right of Canada may not
exercise Her rights under
c) est suspendu l'exercice par Sa Majeste du
chef du Canada des droits que lui confere
l'une des dispositions suivantes a l' egard de
la personne insolvable, lorsque celle-ci est un
debiteur fiscal vise acette disposition:
(i) subsection 224(1.2) of the Income Tax
Act, or
(ii) any provision of the Canada Pension
Plan or of the Employment Insurance Act
that
(i) Ie paragraphe 224(1.2) de la Loi de
I 'impot sur le revenu,
(ii) toute disposition du Regime de pensions du Canada ou de la Loi sur I'assurance-emploi qui, ala fois :
(A) refers to subsection 224(1.2) of the
Income Tax Act, and
(B) provides for the collection of a contribution, as defined in the Canada Pension Plan, an employee's premium or
employer's premium, as defmed in the
Employment Insurance Act, or a premi-
(A) renvoie au paragraphe 224(1.2) de
la Loi de l'impot sur le revenu,
(B) prevoit la perception d'une cotisation, au sens du Regime de pensions du
113
Cession de
creances
comptables
Suspensiondes
procedures en
cas d'avis
d'intention
Secured
creditors
within six months after the filing of a previous
amendment to the same consumer proposal.
depot d'une autre modification de la meme proposition de consommateur.
(4) Subject to sections 79 and 127 to 135
and subsection 248(1), the filing of a consumer
proposal under subsection 66.13(2) does not
prevent a secured creditor from realizing or
otherwise dealing with his security in the same
manner as he would have been entitled to realize or deal with it if this section had not been
passed, unless the court otherwise orders, but in
so ordering the court shall not postpone the
right of the secured creditor to realize or otherwise deal with his security, except as follows:
(4) Sous reserve des articles 79 et 127 a 135
et du paragraphe 248(1), Ie depct d'une proposition de consommateur aux termes du paragraphe 66.13(2) n'a pas pour effet d'empecher
un creancier garanti de realiser sa garantie ou
de faire toutes autres operations a son egard
tout comme il aurait pu le faire en I'absence du
present article, amoins que Ie tribunal n'en ordonne autrement. Tout report ordonne a cet
egard doit toutefois etre conforme aux regles
suivantes:
(a) in the case of a security for a debt that is
due at the date of the approval or deemed approval of the consumer proposal or that becomes due not later than six months thereafter, that right shall not be postponed for
more than six months from that date; and
a) dans Ie cas d'une garantie relative a une
dette echue a la date de l'approbation - effective ou presumee ~ de la proposition ou
qui Ie devient dans les six mois suivants,
I'exercice des droits du creancier ne peut etre
reporte aplus de six mois apres cette date;
(b) in the case of a security for a debt that
a une
dette qui ne devient echue que plus de six
mois apres la date de I'approbation - effective ou presumee - de la proposition,
I' exercice des droits du creancier peut etre
reporte a plus de six mois apres cette date mais en aucun cas au-dela de Ia date a laquelle la dette devient exigible en vertu de
I' acte ou de la regle de droit instituant la garantie - seulement si tous les versements
d'interets en souffrance depuis plus de six
mois sont acquittes et si tous les autres manquements de plus de six mois sont repares, et
seulement tant qu'aucun versement d'interets
ne demeure en souffrance, ou tant qu' aucun
autre manquement ne reste sans reparation,
pendantplus de six mois.
b) dans le cas d'une garantie relative
does not become due until more than six
months after the date of the approval or
deemed approval of the consumer proposal,
that right shall not be postponed for more
than six months from that date, unless all instalments of interest that are more than six
months in arrears are paid and all other defaults of more than six months standing are
cured, and then only so long as no instalment
of interest remains in arrears Of" defaults remain uncured for more than six months, but,
in any event, not beyond the date at which
the debt secured by the security becomes
payable under the instrument or act, or law,
creating the security.
Exception
(5) No order may be made under subsection
(4) if the order would have the effect of preventing a secured creditor from realizing or
otherwise dealing with fmancial collateral.
1992, c. 27, s. 36; 1997, c. 12, s. 64; 2004, c. 25, s. 43(E);
2007, c. 29, s. 95.
Stays of
proceedingsbankruptcies
69.3 (1) Subject to subsections (1.1) and (2)
and sections 69.4 and 69.5, on the bankruptcy
of any debtor, no creditor has any remedy
against the debtor or the debtor's property, or
shall commence or continue any action, execution or other proceedings, for the recovery of a
claim provable in bankruptcy.
Creanciers
garantis
(5) L'ordonnance visee au paragraphe (4) ne
peut avoir pour effet d'empecher Ie creancier
garanti de realiser la garantie financiere ou
d' effectuer aI' egard de celle-ci toute autre operation.
Exception
1992, ch. 27, art. 36; 1997,ch. 12, art. 64;2004, ch. 25, art.
43(A); 2007, ch. 29, art. 95.
69.3 (1) Sous reserve des paragraphes (1.1)
et (2) et des articles 69.4 et 69.5, a compter de
la faillite du debiteur, ses creanciers n'ont aucun recours contre lui ou contre ses biens et ils
ne peuvent intenter ou continuer aucune action,
mesure d'execution ou autre procedure en vue
du recouvrement de reclamations prouvables en
matiere de faillite.
122
Suspensiondes
proceduresen
cas de faillite
Fail/ite et insolvabilite - 27 octobre 2014
End of stay
Secured
creditors
(1.1) Subsection (1) ceases to apply in respect of a creditor on the day on which the
trustee is discharged.
(2) Subject to sections 79 and 127 to 135
and subsection 248(1), the bankruptcy of a
debtor does not prevent a secured creditor from
realizing or otherwise dealing with his or her
security in the same manner as he or she would
have been entitled to realize or deal with it if
this section had not been passed, unless the
court otherwise orders, but in so ordering the
court shall not postpone the right of the secured
creditor to realize or otherwise deal with his or
her security, except as follows:
(1.1) Le paragraphe (1) cesse de s'appliquer
liberation du syndic.
a tout creancier le jour de la
(2) Sous reserve des articles 79 et 127 a 135
et du paragraphe 248(1), la faillite d'un debiteur n'a pas pour effet d'empecher un creancier
garanti de realiser sa garantie ou de faire toutes
autres operations a son egard tout comme il aurait pu le faire en l'absence du present article, a
moins que le tribunal n'en decide autrement.
Tout report ordonne a cet egard doit toutefois
etre conforme aux regles suivantes :
b) dans le cas d'une garantie relative a une
dette qui ne devient echue que plus de six
mois apres la date OU Ie failli est devenu tel,
l'exercice des droits du creancier peut etre
reporte a plus de six mois apres cette date mais en aucun cas au-dela de la date a laquelle la dette devient exigible en vertu de
l'acte ou de la regle de droit instituant la garantie - seulement si tous les versements
d'interets en souffrance depuis plus de six
mois sont acquittes et si tous les autres manquements de plus de six mois sont repares, et
seulement tant qu'aucun versement d'interets
ne demeure en souffrance, ou tant qu'aucun
autre manquement ne reste sans reparation,
pendant plus de six mois.
(b) in the case of a security for a debt that
does not become due until more than six
months after the date the bankrupt became
bankrupt, that right shall not be postponed
for more than six months from that date, unless all instalments of interest that are more
than six months in arrears are paid and all
other defaults of more than six months standing are cured, and then only so long as no instalment of interest remains in arrears or defaults remain uncured for more than six
months, but, in any event, not beyond the
date at which the debt secured by the security becomes payable under the instrument or
law creating the security.
(2.1) No order may be made under subsection (2) if the order would have the effect of
preventing a secured creditor from realizing or
otherwise dealing with fmancial collateral.
(2.1) L' ordonnance visee au paragraphe (2)
ne peut avoir pour effet d'empecher le creancier garanti de realiser la garantie financiere ou
d'effectuer aI'egard de celle-ci toute autre operation.
(3) [Repealed, 2012, c. 31, s. 418]
Stay of
proceedingsdirectors
Creanciers
garantis
a) dans le cas d'une garantie relative a une
dette echue a la date OU Ie failli est devenu
tel ou qui le devient dans les six mois suivants, l'exercice des droits du creancier ne
peut etre reporte a plus de six mois apres
cette date;
(a) in the case of a security for a debt that is
due at the date the bankrupt became bankrupt
or that becomes due not later than six months
thereafter, that right shall not be postponed
for more than six months from that date; and
Exception
Fin de Ia
suspension
Exception
(3) [Abroge,20l2,ch.3l,art.4l8]
1992, c. 27, s. 36; 2005, c. 3, s. 14, c. 47, s. 62;2007, c. 29,
s. 96, c. 36, s. 36; 2012, c. 31, s. 418.
1992, ch. 27, art. 36; 2005, ch. 3, art. 14, ch. 47, art. 62;
2007, ch.29, art. 96, ch. 36, art. 36;2012, ch. 31, art. 418.
69.31 (1) Where a notice of intention under
subsection 50.4(1) has been filed or a proposal
has been made by an insolvent corporation, no
person may commence or continue any action
against a director of the corporation on any
claim against directors that arose before the
commencement of proceedings under this Act
and that relates to obligations of the corporation
69.31 (1) Entre la date ou une personne morale insolvable a depose l'avis d'intention prevu au paragraphe 50.4(1) ou une proposition et
la date d'approbation de la proposition ou celle
de sa faillite, nul ne peut intenter ou continuer
d'action contre les administrateurs relativement
aux reclamations contre eux qui sont anterieures aux procedures intentees sous Ie regime
123
Suspensiondes
proceduresadministrateurs
where directors are under any law liable in their
capacity as directors for the payment of such
obligations, until the proposal, if one has been
filed, is approved by the court or the corporation becomes bankrupt.
de la presente loi et visent des obligations dont
ils peuvent etre, es qualites, responsables en
droit.
Exception
of an action against a director on a guarantee
given by the director relating to the corporation's obligations or an action seeking injunctive relief against a director in relation to the
corporation,
(2) La suspension ne s'applique toutefois
pas aux actions contre les administrateurs pour
les garanties qu'ils ont donnees relativement
aux obligations de la personne morale ni aux
mesures de la nature d'une injonction les visant
au sujet de celle-ci.
Exception
Resignation or
removal of
directors
(3) Where all of the directors have resigned
or have been removed by the shareholders
without replacement, any person who manages
or supervises the management of the business
and affairs of the corporation shall be deemed
to be a director for the purposes of this section,
(3) Si tous les administrateurs demissionnent ou sont destitues par les actionnaires
sans etre remplaces, quiconque dirige ou supervise les activites commerciales et les affaires
interne's de la personne morale est repute un administrateur pour l'application du present article.
Demissionou
1997, c. 12,5. 65.
destitution des
administrateurs
1997, ch. 12,art. 65.
Court may
declare that
stays, etc., cease
69.4 A creditor who is affected by the operation of sections 69 to 69.31 or any other person affected by the operation of section 69,31
may apply to the court for a declaration that
those sections no longer operate in respect of
that creditor or person, and the court may make
such a declaration, subject to any qualifications
that the court considers proper, if it is satisfied
(a) that the creditor or person is likely to be
materially prejudiced by the continued operation of those sections; or
(b) that it is equitable on other grounds to
69.4 Tout creancier touche par l'application
des articles 69 a 69.31 ou toute personne touchee par celIe de l'article 69.31 peut demander
au tribunal de declarer que ces articles ne lui
sont plus applicables. Le tribunal peut, avec les
reserves qu'il estime indiquees, donner suite a
la demande s'il est convaincu que la continuation d'application des articles en question lui
causera vraisemblablement un prejudice serieux ou encore qu'il serait, pour d'autres motifs, equitable de rendre pareille decision.
Declaration de
non-application
1992,ch.27,art.36; 1997,ch. 12,art. 65.
make such a declaration.
1992,c. 27, 5,36; 1997,c. 12,5. 65.
Non-application
of certain
provisions
69.41 (1) Sections 69 to 69.31 do not apply
in respect of a claim referred to in subsection
121(4).
69.41 (1) Les articles 69 a 69.31 ne s'appliquent pas aux reclamations visees au paragraphe 121(4).
No remedy, etc.
(2) Notwithstanding subsection (1), no creditor with a claim referred to in subsection
121(4) has any remedy, or shall commence or
continue any action, execution or other proceeding, against
(2) Malgre le paragraphe (1), le creancier
d'une reclamation mentionnee au paragraphe
121(4) n'a aucun recours et ne peut intenterou
continuer d'actions, executions ou autres procedures relativement aux biens du failli devolus
au syndic ou aux montants a verser a l'actif de
la faillite au titre de l'article 68.
(a) property of a bankrupt that has vested in
the trustee; or
(b) amounts that are payable to the estate of
Precision
Recours interdits
1997,ch. 12,art. 65.
the bankrupt under section 68.
1997, c. 12,5.65.
No stay, etc., in
certain cases
69.42 Despite anything in this Act, no provision of this Act shall have the effect of staying
69.42 Malgre les autres dispositions de la
presente loi, aucune disposition de la 'presente
124
Restrictions
GENERAL PROVISIONS
DISPOSITIONS GENERALES
Precedence of
bankruptcy
orders and
assignments
70. (1) Every bankruptcy order and every
assignment made under this Act takes precedence over all judicial or other attachments,
garnishments, certificates having the effect of
judgments, judgments, certificates of judgment,
legal hypothecs of judgment creditors, executions or other process against the property of a
bankrupt, except those that have been completely executed by payment to the creditor or
the creditor's representative, and except the
rights of a secured creditor.
70. (1) Toute ordonnance de faillite rendue
et toute cession faite en conformite avec la presente loi ont priorite sur toutes saisies, saisiesarrets, certificats ayant l'effet de jugements, jugements, certificats de jugements, hypotheques
legales resultant d'un jugement, procedures
d' execution ou autres procedures contre les
biens d'un failli, sauf ceux qui ont ete completement regles par paiement au creancier ou a
son representant, et sauf les droits d'un.creancier garanti.
Priorite des
ordonnances de
faillite et
cessions
Costs
(2) Despite subsection (1), one bill of costs
of a barrister or solicitor or, in the Province of
Quebec, an advocate, including the executing
officer's fees and land registration fees, shall be
payable to the creditor who has first attached
by way of garnishment or filed with the executing officer an attachment, execution or other
process against the property of the bankrupt.
(2) Malgre Ie paragraphe (1), un seul memoire de frais emanant d'un avocat, y compris
les honoraires de l'huissier-executant et les
droits d'enregistrement fonciers, est a payer au
creancier qui a Ie premier mis la saisie-arret ou
depose entre les mains de l'huissier-executant
une saisie, une procedure d' execution ou une
autre procedure contre les biens du failli.
Frais
R.S., 1985, c. B-3, s. 70; 1992, c. 27, s. 37; 1997, c. 12, s.
66(F); 2004, c. 25, s. 44; 2005, c. 47, s. 63(E).
12, art. 66(F); 2004, ch. 25, art. 44; 2005, ch. 47, art. 63(A).
71. On a bankruptcy order being made or an
assignment being filed with an official receiver,
a bankrupt ceases to have any capacity to dispose of or otherwise deal with their property,
which shall, subject to this Act and to the rights
of secured creditors, immediately pass to and
vest in the trustee named in the bankruptcy order or assignment, and in any case of change of
trustee the property shall pass from trustee to
trustee without any assignment or transfer.
71. Lorsqu'une ordonnance de faillite est
rendue, ou qu'une cession est produite aupres
d'un sequestre officiel, Ie failli cesse d'etre habile a ceder ou autrement aliener ses biens qui'
doivent, sous reserve des autres dispositions de
la presente loi et des droits des creanciers garantis, immediatement passer et etre devolus au
syndic nomme dans I' ordonnance de faillite ou
dans la cession, et advenant un changement de
syndic, les biens passent de syndic a syndic
sans cession ni transfert quelconque.
Vesting of
property in
trustee
R.S., 1985, c. B-3, s. 71; 1997, c. 12, s. 67; 2004, c. 25,s.
44.
Devolution des
biens au syndic
25, art. 44.
Application of
other substantive
law
72. (1) The provisions of this Act shall not
be deemed to abrogate or supersede the substantive provisions of any other law or statute
relating to property and civil rights that are not
in conflict with this Act, and the trustee is entitled to avail himself of all rights and remedies
provided by that law or statute as supplementary to and in addition to the rights and remedies provided by this Act.
72. (1) La presente loi n'a pas pour effet
d'abroger ou de remplacer les dispositions de
droit substantif d'une autre loi ou regle de droit
concernant la propriete et les droits civils, non
incompatibles avec la presente loi, et Ie syndic
est autorise a se prevaloir de tous les droits et
recours prevus par cette autre loi ou regle de
droit, qui sont supplementaires et additionnels
aux droits et recours prevus par la presente loi.
Application
d'autres lois
positives
Operation of
provincial law re
documents
executed under
Act
(2) No bankruptcy order, assignment or other document made or executed under the authority of this Act shall, except as otherwise
provided in this Act, be within the operation of
any legislative enactment in force at any time
in any province relating to deeds, mortgages,
hypothecs, judgments, bills of sale, chattel
(2) Nulle ordonnance de faillite, cession ou
autre document fait ou souscrit sous l'autorite
de la presente loi n' est, sauf disposition
contraire de celle-ci, assujetti a l'application de
toute loi en vigueur a toute epoque dans une
province relativement aux actes, hypotheques,
jugements, actes de vente, biens ou enregistre-
Application de
lois provinciales
127
Bankruptcy and 1nsolvency- October 27,2014
mortgages, property or registration of documents affecting title to or liens or charges on
real or personal property or immovables or
movables.
RS., 1985, c. B-3, s. 72; 1997, c. 12, s. 68(F); 2004, c. 25,
ments de pieces affectant Ie titre afferent aux
biens, meubles ou immeubles, personnels ou
reels, ou les privileges ou charges sw- ces biens.
L.R. (1985), ch. B-3, art. 72; 1997, ch. 12, art. 68(F); 2004,
ch. 25, art. 45.
s.45.
Purchaser in
good faith at
sale protected
73. (1) An execution levied by seizure and
sale of the property of a bankrupt is not invalid
by reason only of its being an act of bankruptcy, and a person who purchases the property in
good faith under a sale by the executing officer
acquires a good title to the property against the
trustee,
73. (1) Une execution exercee par saisie et
vente des biens d'un failli n'est pas invalide
pow- le seul motif qu'elle est un acte de faillite,
et une personne qui achete de bonne foi ces
biens a une vente faite par l'huissier-executant
acquiert un titre valable a ces biens contre le
syndic.
Executing
officer to deliver
property of
bankrupt to
trustee
(2) If an assignment or a bankruptcy order
has been made, the executing officer or other
officer of any court or any other person having
seized property of the bankrupt under execution
or attachment or any other process shall, on receiving a copy of the assignment or the
bankruptcy order certified by the trustee as a
tlUe copy, immediately deliver to the trustee all
the property of the bankrupt in their hands.
(2) Lorsqu'il a ete fait une cession ou qu'il a
ete rendu une ordonnance de faillite, l'huissierexecutant ou tout autre fonctionnaire d'un tribunal ou toute autre personne ayant saisi des
biens du failli en vertu d'une procedure d'execution, d'une saisie-arret ou de toute autre procedure, sur reception d'une copie de la cession
ou de l' ordonnance de faillite certifiee
conforme par le syndic, livre immediatement au
syndic tous les biens du failli qu'il a en sa possession.
In case of
executing
officer's sale
(3) If the executing officer has sold the
property or any part of the property of a
bankrupt, the executing officer shall deliver to
the trustee the money so realized less the executing officer's fees and the costs referred to in
subsection 70(2).
(3) Lorsque l'huissier-executant a vendu les
biens du failli ou une partie de ces biens, il remet au syndic les sommes d'argent qu'il a ainsi
realisees, moins ses honoraires et les frais mentionnes au paragraphe 70(2).
Dans Ie cas de
vente par
I'huissierexecutant
Effect of
bankruptcy on
seizure of
property for rent
or taxes
(4) Any property of a bankrupt under
seizure for rent or taxes shall on production of a
copy of the bankruptcy order or the assignment
certified by the trustee as a tme copy be delivered without delay to the trustee, but the costs
of distress or, in the Province of Quebec, the
costs of seizure are a security on the property
ranking ahead of any other security on it, and,
if the property or any part of it has been sold,
the money realized from the sale less the costs
of distress, or seizure, and sale shall be paid to
the trustee,
(4) Sur production d'une copie de l'ordonnance de faillite ou de la cession, que le syndic
a certifiee conforme, tout bien d'un failli saisi
pow- loyer ou pow- taxes est remis sans delai au
syndic; mais les frais de saisie constituent une
surete de premier rang sur ces biens et, en cas
de vente de tout ou partie des biens, Ie produit
de celle-ci, moins les frais de la saisie et de la
vente, est remis au syndic.
Effet d'une
faillite sur la
saisie de biens
pour loyer ou
taxes
Protection de
I'acheteur de
bonne foi ala
vente
Remise par
I'huissier-
executant des
biens au syndic
L.R. (1985), ch. B-3, art. 73; 1997, ch. 12, art. 69(F); 2004,
ch. 25, art. 46.
RS., 1985, c. B-3, s. 73; 1997, c. 12, s. 69(F); 2004, c. 25,
s.46.
Registration of
bankruptcy
order or
assignment
74. (1) Every bankruptcy order, or a true
copy certified by the registrar or other officer
of the court that made it, and every assignment,
or a true copy certified by the official receiver,
may be registered by or on behalf of the trustee
in respect of the whole or any part of any real
property in which the bankrupt has any
interest
.
.
74. (1) Toute ordonnance de faillite, ou une
copie conforme d'une telle ordonnance certifiee
par Ie registraire ou par un autre fonctionnaire
du tribunal qui l'a rendue, et chaque cession, ou
une copie conforme de celle-ci certifiee par Ie
sequestre officiel, peuvent etre enregistrees par
Ie syndic ou en son nom, relativement a la tota-
128
Enregistrement
de I' ordonnance
de faillite ou de
la cession
Approval of
trustee's final
statement by
inspectors
inspector's
expenses and
fees
and inquire into the. adequacy of the security
filed by the trustee and, subject to subsection
(4), shall approve the trustee's final statement
of receipts and disbursements, dividend sheet
and disposition of unrealized property.
rantie fournie par le syndic et, sous reserve du
paragraphe (4), approuvent l' etat definitif des
recettes et des debours prepare par le syndic, le
bordereau de dividende et la disposition des
biens non realises.
(4) Before approving the fmal statement of
receipts and disbursements of the trustee, the
inspectors shall satisfy themselves that all the
property has been accounted for and that the
administration of the estate has been completed
as far as can reasonably be done and shall determine whether or not the disbursements and
expenses incurred are proper and have been duly authorized, and the fees and remuneration
just and reasonable in the circumstances.
(4) Avant d'approuver l'etat definitif des recettes et des debours du syndic, les inspecteurs
doivent s'assurer eux-memes qu'il a ete rendu
compte de tous les biens et que l'administration
de l'actif a ete completee, dans la mesure ou il
est raisonnablement possible de Ie faire, et
doivent etablir si les debours et depenses subis
sont appropries ou non et ont ete dfunent autorises et si les honoraires et la remuneration sont
justes et raisonnables en l' occurrence.
Approbation par
les inspecteurs
de l'etat definitif
prepare par Ie
syndic
(5) Chaque inspecteur peut etre rembourse
des frais de deplacement reels et necessaires
engages dans le cadre de ses fonctions et il peut
aussi recevoir les honoraires prescrits pour
chaque assemblee,
Frais et
honoraires
(6) Un inspecteur regulierement autorise par
les creanciersou par les autres inspecteurs a
executer des services speciaux pour le compte
de I' actif peut avoir droit a des honoraires speciaux pour ces services, sous reserve de l'approbation du tribunal qui peut modifier ces honoraires comme ille juge apropos eu egard a la
nature des services rendus par rapport a 1'obligation qu'a l'inspecteur d'agir de bonne foi en
vue de I'interet general de l'administration de
l'actif.
Services
speciaux
(5) Each inspector
(a) may be repaid actual and necessary trav-
el expenses incurred in relation to the performance of the inspector's duties; and
(b) may be paid such fees per meeting as are
prescribed.
Special services
(6) An inspector duly authorized by the
creditors or by the other inspectors to perform
special services for the estate may be allowed a
special fee for those services, subject to approval of the court, which may vary that fee as
it deems proper having regard to the nature of
the services rendered in relation to the obligations of the inspector to the estate to act in good
faith for the general interests of the administration of the estate.
RS., 1985, c. B-3, s. 120; 1992, c. 27, s. 49; 2001, c. 4, s.
30; 2004, c. 25, s. 65(F); 2005, c. 47, s. 85.
L.R (1985), ch. B-3, art. 120; 1992, ch. 27, art. 49; 2001,
ch.4,art~30;2004,ch.25,art. 65(F);2005, ch. 47, art. 85.
CLAIMS PROVABLE
RECLAMATIONS PROUVABLES
Claims provable
121. (l) All debts and liabilities, present or
future, to which the bankrupt is subject on the
day on which the bankrupt becomes bankrupt
or to which the bankrupt may become subject
before the bankrupt's discharge by reason of
any obligation incurred before the day on
which the bankrupt becomes bankrupt shall be
deemed to be claims provable in proceedings
under this Act.
121. (l) Toutes creances et tous engagements, presents ou futurs, auxquels Ie failli est
assujetti a la date a laquelle il devient failli, ou
auxquels il peut devenir assujetti avant sa liberation, en raison d'une obligation contractee anterieurement a cette date, sont reputes des reclamations prouvables dans des procedures
entamees en vertu de la presente loi.
Reclamations
prouvables
Contingent and
unliquidated
claims
(2) The determination whether a contingent
or unliquidated claim is a provable claim and
the valuation of such a claim shall be made in
accordance with section 135.
(2) La question de savoir si une reclamation
eventuelle ou non liquidee constitue une reclamation prouvable et, le cas echeant, son evaluation sont decidees en application de 1'article
135.
Decision
167
Debts payable at
a future time
(3) A creditor may prove a debt not payable
at the date of the bankruptcy and may receive
dividends equally with the other creditors, deducting only thereout a rebate of interest at the
rate of five per cent per annum computed from
the declaration of a dividend to the time when
the debt would have become payable according
to the terms on which it was contracted.
(3) Un creancier peut etablir la preuve d'une
creance qui n'est pas echue a la date de la
faillite, et recevoir des dividendes tout comme
Iesautres creanciers, en en deduisant seulement
un rabais d'interet au taux de cinq pour cent par
an calcule a compter de la declaration d'un dividende jusqu' a la date OU la creance devait
echoir selon les conditions auxquelles elle a ete
contractee,
Creances
payables aune
date future
Family support
claims
(4) A claim in respect of a debt or liability
referred to in paragraph 178(l)(b) or (c)
payable under an order or agreement made before the date of the initial bankruptcy event in
respect of the bankrupt and at a time when the
spouse, former spouse, former common-law
partner or child was living apart from the
bankrupt, whether the order or agreement provides for periodic amounts or lump sum
amounts, is a claim provable under this Act.
(4) Constitue une reclamation prouvable la
reclamation pour une dette ou une obligation
mentionnee aux alineas 178(l)b) ou c) decoulant d'une ordonnance judiciaire rendue ou
d'une entente conclue avant l'ouverture de la
faillite et a un moment OU l'epoux, l'ex-epoux
ou ancien conjoint de fait ou l'enfant ne vivait
pas avec Ie failli, que l'ordonnance ou l'elitente
prevoie une somme forfaitaire ou payable periodiquement.
Reclamations
alimentaires
R.S., 1985, c. B-3, s. 121; 1992, c. 27, s. 50; 1997, c. 12, s.
87; 2000, c. 12, s. 14.
L.R. (1985), ch. B-3, art. 121; 1992, ch. 27, art. 50; 1997,
ch. 12, art. 87;2000,ch. 12, art. 14.
Claims provable
in bankruptcy
following
proposal
122. (l) The claims of creditors under a
proposal are, in the event of the debtor subsequently becoming bankrupt, provable in the
bankruptcy for the full amount of the claims
less any dividends paid thereon pursuant to the
proposal.
122. (l) Les reclamations des creanciers
aux termes d'une proposition sont, dans Ie cas
OU Ie debiteur deviendrait subsequemment en
faillite, prouvables dans la faillite pour Ie plein
montant des reclamations moins tout dividende
paye a cet egard en conformite avec la proposition.
Reclamations
prouvables en
faillite ala suite
d'une
proposition
Interest
(2) If interest on any debt or sum certain is
provable under this Act but the rate of interest
has not been agreed on, the creditor may prove
interest at a rate not exceeding five per cent per
annum to the date of the bankruptcy from the
time the debt or sum was payable, if evidenced
by a written document, or, if not so evidenced,
from the time notice has been given the debtor
of the interest claimed.
(2) Lorsque l'interet sur toute creance ou
somme determinee est prouvable sous Ie regime de la presente loi, mais qu'il n'a pas ete
convenu du taux d'interetIe creancier peut etablir la preuve d'un interet aun taux maximal de
cinq pour cent par an jusqu'a la date de la
faillite a compter de la date OU la creance ou
somme etait exigible, si elle est attestee par un
document ecrit, ou, si elle n'est pas ainsi attestee, a compter de la date ou il a ete donne au
debiteur avis de la reclamation d'interet.
Interets
R.S., 1985, c. B-3, s. 122; 2004, c. 25, s. 66(E).
L.R. (1985), ch. B-3, art. 122; 2004, ch. 25, art. 66(A).
Proof in respect
of distinct
contracts
123. Where a bankrupt was, at the date of
the bankruptcy, liable in respect of distinct contracts as a member of two or more distinct
firms, or as a sole contractor and also as member of a firm, the circumstance that the firms
are in whole or in part composed of the same
individuals, or that the sole contractor is also
one of the joint contractors, shall not prevent
proof, in respect of the contracts, against the
properties respectively liable on the contracts.
123. Lorsqu'un failli etait, a la date de la
faillite, responsable a l'egard de contrats distincts, en qualite de membre de plusieurs firmes
distinctes, ou en qualite de signataire individuel
des contrats et aussi a titre de membre d'une
firme, Ie fait que les firmes sont entierement ou
en partie composees des memes personnes, ou
que Ie signataire individuel des contrats est aussi l'une des parties contractantes conjointes,
n'empeche nullement la preuve relativement
R.S., c. B-3, s. 96.
168
Preuve aI'egard
de contrats
distincts
aux contrats contre les biens respectivement
impliques dans les contrats.
S.R, ch. B-3, art. 96.
PROOF OF CLAIMS
PREUVE DE RECLAMATIONS
Creditors shall
prove claims
124. (1) Every creditor shall prove his
claim, and a creditor who does not prove his
claim is not entitled to share in any distribution
that may be made.
124. (1) Chaque creancier doit prouver sa
reclamation, faute de quoi il n'a pas droit de
partage dans la distribution qui peut etre operee.
Les creanciers
doivent prouver
leurs
reclamations
Proof by
delivery
(2) A claim shall be proved by delivering to
the trustee a proof of claim in the prescribed
form.
(2) Une reclamation est prouvee par la remise, au syndic, d'une preuve de la reclamation
selon la forme prescrite.
Remise de
preuve
Who may make
proof of claims
(3) The proof of claim may be made by the
creditor himself or by a person authorized by
him on behalf of the creditor, and, if made by a
person so authorized, it shall state his authority
and means of knowledge.
(3) La preuve de reclamation peut etre faite
par Ie creancier lui-meme ou par une personne
qu'il a autorisee a agir en son nom; la preuve, si
elle est faite par une personne ainsi autorisee,
doit enoncer l' autorisation et les sources de renseignement de cette personne.
Qui peut faire la
preuve d'une
reclamation
Shall refer to
(4) The proof of claim shall contain or refer
to a statement of account showing the particulars of the claim and any counter-claim that the
bankrupt may have to the knowledge of the
creditor and shall specify the vouchers or other
evidence, if any, by which it can be substantiated.
(4) La preuve de reclamation doit contenir
ou mentionner un etat de compte enoncant les
details de la reclamation, ainsi que toute
creance compensatoire que Ie failli peut avoir a
la connaissance du creancier, et doit aussi specifier les pieces justificatives ou autre preuve,
s'il en est, qui peuvent en etablir Ie bien-fonde.
La preuve doit
mentionnerun
etat de compte
account
(5) [Abroge, 2005, ch. 47, art. 86]
(5) [Repealed, 2005,c. 47, s. 86]
Penalty for filing
false claim
R.S., 1985, c. B-3, s. 124; 2005, c. 47, 5.86.
L.R (1985), ch. B-3, art. 124; 2005, ch. 47, art. 86.
125. Where a creditor or other person in any
proceedings under this Act files with the trustee
a proof of claim containing any wilfully false
statement or wilful misrepresentation, the court
may, in addition to any other penalty provided
in this Act, disallow the claim in whole or in
part as the court in its discretion may see fit.
125. Lorsqu'un creancier ou une autre personne, au cours de procedures prises en vertu
de la presente loi, depose entre les mains du
syndic une preuve de reclamation contenant
une declaration deliberement fausse ou une
fausse representation faite de propos delibere,
Ie tribunal peut, en sus de toute autre peine prevue par la presente loi, rejeter la creance en tout
ou en partie selon que, a sa discretion, il pourra
juger a propos.
RS., c. B-3, s. 97.
Peine en cas de
reclamation
fausse ou
injustifiable
S.R, ch. B-3, art. 97.
Wbomay
examine proofs
126. (1) Every creditor who has filed a
proof of claim is entitled to see and examine
the proofs of other creditors.
126. (1) Tout creancier qui a depose une
preuve de reclamation a Ie droit de voir et
d'examiner les preuves d'autres creanciers.
Qui peut
examinerla
preuve
Worker's wage
claims
(2) Proofs of claims for wages of workers
and others employed by the bankrupt may be'
made in one proof by the bankrupt, by someone
on the bankrupt's behalf, by a representative of
a federal or provincial ministry responsible for
labour matters, by a representative of a union
representing workers and others employed by
the bankrupt or by a court-appointed represent-
(2) .Les preuves de reclamations pour gages
d'ouvriers et d'autres personnes employes par
Ie failli peuvent etre etablies en une seule
preuve par celui-ci ou pour son compte, par Ie
representant soit d'un ministere federal ou provincial responsable des questions liees au travail, soit d'un syndicat representant les ouvriers
et autres employes, ou par Ie representant nom-
Reclamations
d'ouvriers pour
gages
169
i) par derogation a l'article 152, la procedure, y compris la taxation, relative aux
comptes du syndic est celIe prescrite;
may be given in a single notice in the prescribed form;
(i) .notwithstanding section 152, the procedure respecting the trustee's accounts, including the taxation thereof shall be as prescribed;
j) par derogation aux paragraphes 41(1), (5)
et (6), la procedure de sa liberation est celIe
prescrite;
(j) notwithstanding subsections 41(1), (5)
and (6), the procedure for the trustee's discharge shall be as prescribed; and
(k) the court's authorization referred to in
subsection 30(4) for a sale or disposal ofany
of the bankrupt's property to a person who is
related to the bankrupt is required only if the
creditors decide that the authorization is required.
k) l'autorisation du tribunal mentionnee au
paragraphe 30(4) pour la disposition - notamment par vente - de biens du failli en faveur d'une personne liee a celui-ci n'est necessaire que si les creanciers decident de
l'exiger.
L.R (1985), ch. B-3, art. 155; 1992, ch. 1, art. 16 et 161,
ch. 27, art. 57; 1997, ch. 12, art. 92; 1999, ch. 31, art. 26;
2005,ch.47,art.94.
RS., 1985, c. B-3, s. 155; 1992, c. 1, SS. 16, 161, c. 27, s.
57; 1997, c. 12, s. 92; 1999, c. 31, s. 26; 2005, c. 47, s. 94.
Fees and
disbursements of
trustee
Agreement to
pay fees and
disbursements
156. The trustee shall receive such fees and
disbursements as may be prescribed.
156. Le syndic recoit les honoraires et debourses qui peuvent etre prescrits.
RS., c. B-3, s. 127.
S.R, ch. B-3, art. 127.
156.1 An individual bankrupt who has never
before been bankrupt under the laws of Canada
or of any prescribed jurisdiction and who is not
required to make payments under section 68 to
the estate of the bankrupt may enter into an
agreement with the trustee to pay the trustee's
fees and disbursements if the total amount required to be paid under the agreement is not
more than the prescribed amount and that total
amount is to be paid before the expiry of the
12-month period after the bankrupt's discharge.
The agreement may be enforced after the
bankrupt's discharge.
156.1 La personne physique qui fait faillite
pour la premiere fois sous Ie regime du droit
canadien ou de tout pays prescrit et qui n' est
pas tenue de faire des versements a l'actif de la
faillite au titre de l'article 68 peut conclure
avec Ie syndic un accord prevoyant Ie paiement
par elle, avant l'expiration de la periode de
douze mois suivant sa liberation, d'une somme
au titre des honoraires et debours du syndic
n'excedant pas la somme prescrite. Cet accord
peut etre execute apres la liberation du failli.
Honoraires et
debourses du
syndic
Accord sur les
honoraires et
debours du
syndic
2005, ch. 47, art. 95.
2005, c. 47, s. 95.
All otber
provisions of
Act to apply
Counselling
157. Except as provided in section 155, all
the provisions of this Act, in so far as they are
applicable, apply with such modifications as
the circumstances require to summary administration.
157. Sauf dans les cas prevus a l'article 155,
toutes les dispositions de la presente loi, dans la
mesure ou elles sont applicables, s'appliquent,
compte tenu des adaptations de circonstance, a
I' administration sommaire.
RS., c. B-3, s. 128.
S.R, ch. B-3, art. 128.
PART VI
PARTIE VI
BANKRUPTS
FAILLIS
COUNSELLING SERVICES
SERVICES DE CONSULTATION
157.1 (1) The trustee
(a) shall provide, or provide for, counselling
157.1 (1) Dans les cas ou Ie failli est une
personne physique, Ie syndic :
for an individual bankrupt, and
a) est tenu de lui offrir des consultations, au
de voir ace qu'illui en soit offert;
184
Toutes les antres
dispositions
s'appliquent
Consultations
(b) may provide, or provide for, counselling
b) peut offrir des consultations aux personnes qui, selon les instructions du surintendant, ont des rapports fmanciers avec le
failli.
for a person who, as specified in directives of
the Superintendent, is fmancially associated
with an individual bankrupt,
in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b), and
the estate of the bankrupt shall pay the costs of
the counselling, as costs of administration of
the estate, according to the prescribed tariff.
Le syndic s'acquitte des taches que lui confie le
present paragraphe conformement aux instructions emises par le surintendant aux termes de
l'alinea 5(4)b); les frais des consultations sont a
la charge de l'actif, a titre de frais d'administration, selon Ie taux prescrit.
Idem
(2) Where counselling is provided by a
trustee to a debtor who is not a bankrupt, that
counselling must be provided in accordance
with directives issued by the Superintendent
pursuant to paragraph 5(4)(b).
(2) Les consultations offertes par le syndic a
un debiteur qui n'est pas un failli doivent etre
offertes conformement aux instructions donnees par le surintendant aux termes de l'alinea
5(4)b).
Effect on
automatic
discharge
(3) Subsection 168.1(1) does not apply to an
individual bankrupt who has refused or neglected to receive counselling under subsection (1).
(3) Le paragraphe 168.1(1) ne s'applique
pas. au failli qui est une personne physique,
dans la mesure OU il a refuse ou omis de se prevaloir des consultations offertes aux termes du
paragraphe (1).
1992, c. 27, s. 58; 1997, c. 12, s. 93; 2005, c. 47, s. 96.
Idem
Effet surla
liberation
d'office
1992,ch.27,art. 58; 1997,ch. 12, art. 93;2005, ch. 47,art.
96.
OBLIGATIONS DES FAILLIS
DUTIES OF BANKRUPTS
Duties of
bankrupt
158. A bankrupt shall
158. Le failli doit:
(a) make discovery of and deliver all his
property that is under his possession or control to the trustee or to any person authorized
by the trustee to take possession of it or any
part thereof;
a) reveler et remettre tous ses biens qui sont
en sa possession ou sous son controle, au
syndic ou aune personne que le syndic autorise a en prendre possession en tout ou en
partie;
in directives of the Superintendent, deliver to
the trustee, for cancellation, all credit cards
issued to and in the possession or control of
the bankrupt;
a.I) dans les circonstances prevues par les
instructions du surintendant, remettre au syndic, pour annulation, toutes les cartes de credit delivrees au failli et en sa possession ou
sous son controle;
(b) deliver to the trustee all books, records,
b) remettre au syndic tous les livres, re-
documents, writings and papers including,
without restricting the generality of the foregoing, title papers, insurance policies and tax
records and returns and copies thereof in any
way relating to his property or affairs;
gistres, documents, ecrits et papiers, notamment les documents de titre, les polices d'assurance et les archives et declarations
d'impot, ainsi que les copies de ce qui precede, se rattachant de quelque facon a ses
biens ou affaires;
(a. 1) in such circumstances as are specified
(c) at such time and place as may be fixed
by the official receiver, attend before the official receiver or before any other official receiver delegated by the official receiver for
examination under oath with respect to his
conduct, the causes of his bankruptcy and the
disposition of his property;
c) aux date, heure et lieu que peut fixer le
sequestre officiel, se presenter devant ce dernier ou devant tout autre sequestre officiel
delegue par le sequestre officiel, pour y subir
un interrogatoire sous serment sur sa
conduite, les causes de sa faillite et la disposition de ses biens;
185
Obligations des
faillis
Fail/de et insolvabilite - 27 octobre 2014
a la realisation
de ses biens et au partage des produits entre
ses creanciers;
(j) submit to such other examinations under
k) aider de tout son pouvoir
oath with respect to his property or affairs as
required;
(k) aid to the utmost of his power in the real-
ization of his property and the distribution of
the proceeds among his creditors;
I) executer les procurations, transferts, actes
et instruments qu'il peut etre requis d'executer;
(I) execute any powers of attorney, transfers,
deeds and instruments or acts that may be required;
m) examiner l'exactitude de toutes preuves
de reclamations produites, s' il en est requis
par le syndic;
(m) examine the correctness of all proofs of
n) s'il a connaissance que quelqu'un a pro-
claims filed, if required by the trustee;
duitune reclamation fausse, rapporter immediatement le fait au syndic;
(n) in case any person has to his knowledge
filed a false claim, disclose the fact immediately to the trustee;
n.1) aviser le syndic de tout changement important de sa situation financiere;
(n.1) inform the trustee of any material
0) d'une facon generale, accomplir, au sujet
change in the bankrupt's financial situation;
de ses biens et du partage du produit parmi
ses creanciers, tous actes et toutes choses que
le syndic peut raisonnablement lui demander
de faire, ou que les Regles generales peuvent
prescrire, ou qu'il peut recevoir l'ordre de
faire du tribunal par une ordonnance speciale
rendue a l'egard d'un cas particulier, ou rendue a l' occasion d'une requete particuliere
du syndic, d'un creancier ou d'une personne
(0) generally do all such acts and things in
relation to his property and the distribution
of the proceeds among his creditors as may
be reasonably required by the trustee, or may
be prescribed by the General Rules, or may
be directed by the court by any special order
made with reference to any particular case or
made on the occasion of any special application by the trustee, or any creditor or person
interested; and
interessee;
p) jusqu' a ce qu'il ait ete dispose de sa de-
mande de liberation et jusqu'a ce que l'administration de son actif ait ete completee, tenir
le syndic constamment informe de son
adresse ou de son lieu de residence.
(P) until his application for discharge has
been disposed of and the administration of
the estate completed, keep the trustee advised at all times of his place of residence or
address.
s.s., 1985, c. B-3, s. 158; 1992, c. 27, s. 59; 1997, c. 12, s.
L.R. (1985), ch. B-3, art. 158; 1992, ch. 27, art. 59; 1997,
ch. 12, art. 94;2004, ch. 25, art. 73.
94;2004, c. 25, s. 73.
Where bankrupt
is a corporation
159. Where a bankrupt is a corporation, the
officer executing the assignment, or such
(a) officer of the corporation, or
(b) person who has, or has had, directly or
indirectly, control in fact of the corporation
as the official receiver may specify, shall attend
before the official receiver for examination and
shall perform all of the duties imposed on a
bankrupt by section 158, and, in case offailure
to do so, the officer or person is punishable as
though that officer or person were the bankrupt.
159. Lorsque le faiIIi est une personne morale, Ie fonctionnaire qui execute la cession ou
tout dirigeant de la personne morale ou toute
personne qui, directement ou indirectement, en
a, ou en a eu, le controle de fait, designe parle
sequestre officiel, doit se presenter devant lui
pour etre interroge et doit remplir toutes les
obligations que l'article 158 impose a un faiIIi,
et, s'il omet de le faire, il est susceptible d'etre
puni comme s'il etait le failIi.
Lorsque le failli
est une personne
morale
L.R. (1985), ch. B-3, art. 159; 1992, ch. 27, art. 60.
R.S., 1985, c. B-3, s. 159; 1992, c. 27, s. 60.
Performance of
duties by
imprisoned
bankrupt
160. If a bankrupt is undergoing imprisonment, the court may, in order to enable the
bankrupt to attend in court in bankruptcy pro-
160. Lorsqu'un faiIIi subit un emprisonnement, Ie tribunal peut, afm de lui permettre
d'assister devant Ie tribunal aux procedures en
187
Execution de
fonctions par uo
failli emprisonne
Faillite et insolvabilite - 27 octobre 20]4
(b) not less than once a year, file in the court
and with the trustee a statement verified under oath showing the particulars of any property or income he may have acquired subse-·
quent to the order for his discharge,
b) au moins une fois chaque annee, produire
au tribunal et au syndic une declaration attestee sous serment indiquant les details de tous
biens ou revenus qu'il peut avoir acquis subsequemment a sa liberation.
and the trustee or any creditor may require the
bankrupt to attend for examination under oath
with respect to the facts contained in the statement or with respect to his earnings, income,
after-acquired property or dealings.
Le syndic ou tout creancier peut exiger que le
failli se presente pouretre interroge sous serment relativement aux faits contenus dans la
declaration, ou a ses gains, son revenu, ses
biens posterieurement acquis ou ses operations.
Penalty for
failure to
comply
(2) Where the bankrupt fails to give information or to file a statement as required by subsection (I), to attend for examination when required to do so or to answer all questions fully
and accurately with respect to his earnings, income, after-acquired property or dealings, the
court may on the application of the trustee or of
any creditor revoke the order of discharge.
(2) Lorsque Ie failli ne fournit pas les renseignements ou fie produit pas la declaration
qu'exige Ie paragraphe (I), ne se presente pas a
l'examen lorsqu'il en est requis ou ne repond
pas pleinement et exactement a toutes les questions qui se rapportent a ses gains, son revenu,
ses biens posterieurement acquis ou ses operations, Ie tribunal peut, a la demande du syndic
ou d'un creancier, annuler l'ordonnance de liberation.
Peine en cas de
manquement
Trustee to
distribute funds
payable under
conditional
discharge
(3) Where a conditional order of discharge
of a bankrupt is made providing for payment of
a further dividend or sum of money by the
bankrupt, all payments on account thereof shall
be made to the trustee for distribution to the
creditors.
(3) Lorsqu'une ordonnance conditionnelle
de liberation d'un failli est rendue prescrivant
que ce demier paie un dividende ou une somme
d'argent supplementaire, tout versement a valoir sur ce dividende ou cette somme est fait au
syndic pour distribution aux creanciers,
Le syndic doit
distribuer les
fonds payables
aux termes
d'une liberation
conditionnelle
R.S., c. B-3, s. 146.
S.R., ch. B-3, art. 146.
177. [Abroge, 2000, ch. 12, art. 17]
177. [Repealed, 2000, c. 12, s. 17]
Debts not
released by
order of
discharge
178. (I) An order of discharge does not release the bankrupt from
178. (I) Une ordonnance de liberation ne libere pas le failli :
(a) any fine, penalty, restitution order or
other order similar in nature to a fine, penalty
or restitution order, imposed by a court in respect of an offence, or any debt arising out of
a recognizance or bail;
a) de toute amende, penalite, ordonnance de
restitution ou toute ordonnance similaire infligee ou rendue par un tribunal, ou de toute
autre dette provenant d'un engagement ou
d'un cautionnement en matiere penale;
(a.]) any award of damages by a court in
a.Ty de toute indemnite accordee en justice
dans une affaire civile:
civil proceedings in respect of
(i) bodily harm intentionally inflicted, or
sexual assault, or
(i) pour des lesions corporelles causees
intentionnellement ou pour agression
sexuelle,
(ii) wrongful death resulting therefrom;
(ii) pour deces decoulant de celles-ci;
(b) any debt or liability for alimony or ali-
mentary pension;
b) de toute dette ou obligation pour pension
alimentaire;
(c) any debt or liability arising under a judi-
cial decision establishing affiliation or respecting support or maintenance, or under an
agreement for maintenance and support of a
spouse, former spouse, former common-law
c) de toute dette ou obligation aux termes de
la decision d'un tribunal en matiere de filiation ou d'aliments ou aux termes d'une entente alimentaire au profit d'un epoux, d'un
205
L' ordonnance de
liberation ne
libere pas des
dettes
partner or child living apart from the
bankrupt;
ex-epoux ou ancien conjoint de fait ou d'un
enfant vivant separe du failli;
(d) any debt or liability arising out of fraud,
d) de toute dette ou obligation resultant de la
fraude, du detournement, de la concussion ou
de l'abus de confiance alors qu'il agissait,
dans la province de Quebec, a titre de fiduciaire ou d'administrateur du bien d'autrui
ou, dans les autres provinces, a titre de fiduciaire;
embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or,
in the Province of Quebec, as a trustee or administrator of the property of others;
(e) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other
than a debt or liability that arises from an equity claim;
e) de toute dette ou obligation resultant de
l'obtention de biens ou de services par des
faux-semblants ou la presentation erronee et
frauduleuse des faits, autre qu'une dette ou
obligation qui decoule d'une reclamation relative a des capitaux propres;
(j) liability for the dividend that a creditor
would have been entitled to receive on any
provable claim not disclosed to the trustee,
unless the creditor had notice or knowledge
of the bankruptcy and failed to take reasonable action to prove his claim;
fJ
(g) any debt or obligation in respect of a
n'ait eu connaissance de la faillite et n'ait
omis de prendre les mesures raisonnables
pour prouver sa reclamation;
loan made under the Canada Student Loans
Act, the Canada Student Financial Assistance Act or any enactment of a province that
provides for loans or guarantees of loans to
students where the date of bankruptcy of the
bankrupt occurred
g) de toute dette ou obligation decoulant
d'un pret consenti ou garanti au titre de la
Loi federale sur les prets aux etudiarus, de la
Loi federate sur I'aide financiere aux etudiants ou de toute loi provinciale relative aux
prets aux etudiants lorsque la faillite est survenue avant la date a laquelle Ie failli a cesse
d'etre un etudiant, a temps plein ou a temps
partiel, au regard de la loi applicable, ou
dans les sept ans suivant cette date;
(i) before the date on which the bankrupt
ceased to be a full- or part-time student, as
the case may be, under the applicable Act
or enactment, or
(ii) within seven years after the date on
which the bankrupt ceased to be a full- or
part-time student; or
h) de toute dette relative aux interets dus
(h) any debt for interest owed in relation to
an amount referred to in any of paragraphs
(a) to (g).
Court may order
non-application
of subsection (I)
(1.1) At any time after five years after a
bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time
student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply
to the debt if the court is satisfied that
(a) the bankrupt has acted in good faith in
connection with the bankrupt's liabilities under the debt; and
de l'obligation visant Ie dividende qu'un
creancier aurait eu droit de recevoir sur toute
reclamation prouvable non revelee au syndic,
a moins que ce creancier n'ait ete averti ou
l'egard d'une somme visee
a)
a
a Pun des alineas
ag).
(1.1) Lorsque Ie failli qui a une dette visee a
I'alinea (1)g) n'est plus un etudiant a temps
plein ou a temps partiel depuis au moins cinq
ans au regard de la loi applicable, Ie tribunal
peut, sur demande, ordonner que la dette soit
soustraite a l'application du paragraphe (1) s'il
est convaincu que Ie faiIli a agi de bonne foi relativement a ses obligations decoulant de cette
dette et qu'il a et continuera a avoir des difficultes financieres telles qu'il ne pourra pas acquitter celle-ci.
(b) the bankrupt has and will continue to experience financial difficulty to such an extent
206
Ordonnance de
non-application
du paragraphe
(I)
that the bankrupt will be unable to pay the
debt.
Claims released
Partner or cotrustee not
released
(2) Subject to subsection (1), an order of
discharge releases the bankrupt from all claims
provable in bankruptcy.
(2) Une ordonnance de liberation Iibere le
failli de toutes autres reclamations prouvables
en matiere de faillite.
RS., 1985, c. B-3, s. 178; RS., 1985, c. 3 (2nd Supp.), s.
28; 1992, c. 27, s. 64; 1997, c. 12, s. 105; 1998, c. 21, s.
103; 2000, c. 12, s. 18; 2001, c. 4, s. 32; 2004, c. 25, s. 83;
2005, c. 47,s. 107;2007, c. 36,s. 54.
L.R (1985), ch. B-3, art. 178; L.R (1985), ch. 3 (2e suppl.),
art. 28; 1992, ch. 27, art. 64; 1997, ch. 12, art. 105; 1998,
ch. 21, art. 103; 2000, ch. 12, art. 18; 2001, ch. 4, art. 32;
2004, ch. 25, art. 83; 2005, ch. 47, art. 107; 2007, ch. 36,
art. 54.
179. An order of discharge does not release
a person who at the time of the bankruptcy was
a partner or co-trustee with the bankrupt or was
jointly bound or had made a joint contract with
the bankrupt, or a person who was surety or in
the nature of a surety for the bankrupt.
179. Une ordonnance de liberation ne Iibere
pas une personne qui, au moment de la faillite,
etait un associe du failli ou cofiduciaire avec Ie
failli, ou etait conjointement liee ou avait passe
un contrat en commun avec lui, ou une personne qui etait caution ou semblait etre une
caution pour lui.
R.S., 1985, c. B-3, s. 179; 2004, c. 25, s. 84(F); 2005, c. 47,
s. 108(E).
Reclamations
liberees
Un associe n' est
pas libere
L.R (1985), ch. B-3, art. 179; 2004, ch. 25, art. 84(F);
2005,ch.47,art.l08(1\).
Court may annul
discharge
180. (1) Where a bankrupt after his discharge fails to perform the duties imposed on
him by this Act, the court may, on application,
annul his discharge.
180. (1) Lorsqu'un failli, apres sa liberation, ne remplit pas les obligations que lui impose la presente loi, le tribunal peut, sur demande, annuler sa liberation.
Le tribunal peut
annuler la
liberation
Annulment of
discharge
obtained by
fraud
(2) Where it appears to the court that the
discharge of a bankrupt was obtained by fraud,
the court may, on application, annul his discharge.
(2) Lorsque le tribunal juge que la liberation
du failli a ete obtenue par fraude, il peut, sur
demande, annuler sa liberation.
Annulation de la
liberation
obtenue par
fraude
Effect of
annulment of
discharge
(3) An order revoking or annulling the discharge of a bankrupt does not prejudice the validity of a sale, disposition of property, payment made or thing duly done before the
revocation or annulment of the discharge.
(3) Une ordonnance revoquant ou annulant
la liberation d'un failli ne porte pas atteinte a la
validite de toute vente, de toute disposition de
biens, de tout paiement effectue ou de toute
chose dfunent faite avant la revocation ou I'annulation.
Effet de
l'annulation de
la liberation
RS., 1985, c. B-3, s. 180; 2004, c. 25, s. 85(F).
L.R (1985), ch. B-3, art. 180; 2004, ch. 25, art. 85(F).
Power of COlUt
to annul
bankruptcy
181. (1) If, in the opinion of the court, a
bankruptcy order ought not to have been made
or an assignment ought not to have been filed,
the court may by order annul the bankruptcy.
181. (1) Lorsque le tribunal est d'avis
qu'une ordonnance de faillite n'aurait pas dft
etre rendue, ou une cession produite, il peut
rendre une ordonnance qui annule la faillite.
Pouvoir du
tribunal
d'annuler la
faillite
Effect of
annulment of
bankruptcy
(2) If an order is made under subsection (1),
. all sales, dispositions of property, payments duly made and acts done before the making of the
order by the trustee or other person acting under the trustee's authority, or by the court, are
valid, but the property of the bankrupt shall
vest in any person that the court may appoint,
or, in default of any appointment, revert to the
bankrupt for all the estate, or interest or right of
the trustee in the estate, on any terms and subject to any conditions, if any, that the court may
order.
(2) Lorsqu'une ordonnance est rendue en
vertu du paragraphe (1), toutes les ventes et dispositions de biens, tous les paiements dument
effectues et tous les actes faits anterieurement
par le syndic, par une autre personne agissant
sous son autorite ou par le tribunal sont valides;
mais les biens du failli sont devolus a la personne que le tribunal peut nommer, ou, a defaut
de cette nomination, retournent au failli pour
tout droit, domaine ou interet du syndic, aux
conditions, s'il en est, que le tribunal peut ordonner.
Effet
d'annulation de
la faillite
207
Page 1 of 1
Execution Act, R.S.O. 1990, c. E.24
Execution Act
R.S.O. 1990, CHAPTER E.24
Consolidation Period: From October 25,2010 to the e-Laws currency date.
Last amendment: 2010, c. 16, Sched. 2, s. 3.
http://www.search.e-Iaws.gov.on.ca/en/isysquery/dfb867ab-c4af-4b6d-845...11/10/2014
Execution Act, R.S.O. 1990, c. E.24
Page 1 of 1
2. (1) The following chattels are exempt from seizure under any writ issued out of any
court:
1. Necessary and ordinary wearing apparel of the debtor and his or her family not
exceeding the prescribed amount or, ifno amount is prescribed, $5,000 in value.
2. The household furniture, utensils, equipment, food and fuel that are contained in and
form part of the permanent home of the debtor not exceeding the prescribed amount
or, ifno amount is prescribed, $10,000 in value.
3. In the case of a debtor other than a person engaged solely in the tillage of the soil or
farming, tools and instruments and other chattels ordinarily used by the debtor in the
debtor's business, profession or calling not exceeding the prescribed amount or, ifno
amount is prescribed, $10,000 in value.
4. In the case of a person engaged solely in the tillage of the soil or farming, the
livestock, fowl, bees, books, tools and implements and other chattels ordinarily used
by the debtor in the debtor's business or calling not exceeding the prescribed amount
or, ifno amount is prescribed, $25,000 in value.
5. In the case of a person engaged solely in the tillage of the soil or farming, sufficient
seed to seed all the person's land under cultivation, not exceeding 100 acres, as
selected by the debtor, and fourteen bushels of potatoes, and, where seizure is made
between the 1st day of October and the 30th day of April, such food and bedding as
are necessary to feed and bed the livestock and fowl that are exempt under this
section until the 30th day of April next following.
6. A motor vehicle not exceeding the prescribed amount or, ifno amount is prescribed,
$5,000 in value. R.S.O. 1990, c. E.24, s. 2; 2000, c. 26, Sched. A, s. 8 (2).
Note: On a day to be named by proclamation of the Lieutenant Governor, subsection (1) is
repealed and the following substituted:
Exemptions
ill The following personal property of a debtor that is not a corporation is, at the option of the
debtor, exempt from forced seizure or sale by any process at law or in equity:
1. Necessary clothing of the debtor and the debtor's dependants.
2. Household furnishings and appliances that are of a value not exceeding the
prescribed amount.
3. Tools and other personal property of the debtor, not exceeding the prescribed
amount in value, that are used by the debtor to earn income from the debtor's
occupation.
4. One motor vehicle that is of a value not exceeding the prescribed amount.
5. Personal property prescribed by the regulations that is of a value not exceeding the
prescribed amount. 2010, c. 16, Sched. 2, s. 3 (6).
http://www.e-Iaws.gov.on.ca/html!statutes/englishlelawsstatutes90e24e...11/10/2014
execution forcee (Loi sur 1'), L.R.a. 1990, chap. E.24
Page 1 of 1
Loi sur I'execution forcee
L.R.a. 1990, CHAPITRE E.24
Perlode de codification: Du 25 octobre 2010 ala date a laguelle Lois-en-ligne est a jour.
Derniere modification: 2010, chap. 16, annexe 2, art. 3.
http:/Iwww.e-Iaws.gov.on.ca/html/statutes/french/elaws_statutes_90e24_f....
11/10/2014
execution forcee (Loi sur 1'), L.R.O. 1990, chap. £.24
Page 1 of 1
Exemptions
2. (1) Les biens meubles suivants sont insaisissables quels que soient le bref, ou le
tribunal qui I' a decerne :
1. Les vetements necessaires et ordinaires du debiteur et de sa famille, pour une valeur ne
depassant pas la somme prescrite ou, si aucune somme n' est prescrite, 5 000 $.
2. Le mobilier, les ustensiles, les appareils, les comestibles et les combustibles du menage
du debiteur qui se trouvent dans son domicile et en font partie, pour une valeur ne
depassant pas la somme prescrite ou, si aucune somme n'est prescrite, 10000 $.
3. Dans Ie cas d'un debiteur autre qu'une personne qui s'adonne uniquement au
labourage ou it l'exploitation agricole, les outils, instruments et autres biens meubles
dont il se sert habituellement dans son commerce, sa profession ou son metier, pour
une valeur ne depassant pas la somme prescrite ou, si aucune somme n'est prescrite,
10000 $.
4. Dans le cas d'une personne qui s'adonne uniquement au labourage ou it l'exploitation
agricole, le betail, les volailles, les abeilles, les livres, les outils, les instruments
aratoires et les autres biens meubles dont il se sert habituellement dans son commerce
ou son metier, pour une valeur ne depassant pas la somme prescrite ou, si aucune
somme n'est prescrite, 25 000 $.
5. Dans Ie cas d'une personne qui s'adonne uniquement au labourage ou it l'exploitation
agricole, une quantite suffisante de grain pour ensemencer toute la partie de son bienfonds qui est cultivee, jusqu' it concurrence de 100 acres, que choisit le debiteur, ainsi
que quatorze boisseaux de pommes de terre. Si la saisie est pratiquee entre le 1er
octobre et le 30 avril, la pature, la patee et la litiere necessaires au betail et aux
volailles qui sont insaisissables en vertu du present article jusqu'au 30 avril suivant.
6. Un vehicule automobile, pour une valeur ne depassant pas la somme prescrite ou, si
aucune somme n'est prescrite, 5 000 $. L.R.G. 1990, chap. E.24, art. 2; 2000, chap.
26, annexe A, par. 8 (2).
Remarque: Le jour que Ie lieutenant-gouverneur fixe par proclamation, Ie paragraphe (1)
est abroge et remplace par ce qui suit:
Exemptions
ill Les biens meubles suivants d'un debiteur qui n'est pas une personne morale sont, au gre du
debiteur, exempts de saisie ou de vente forcee par quelque procedure que ce soit, en droit ou en
equity :
1. Les vetements necessaires du debiteur et des personnes it sa charge.
2. Le mobilier domestique et les appareils menagers dont la valeur ne depasse pas la
somme prescrite.
3. Les outils et les autres biens meubles du debiteur qui lui servent it tirer un revenu
d'une profession ou d'un metier et dont la valeur ne depasse pas la somme prescrite.
4. Un vehicule automobile dont la valeur ne depasse pas la somme prescrite.
5. Les biens meubles prescrits par reglement dont la valeur ne depasse pas la somme
prescrite. 2010, chap. 16, annexe 2, par. 3 (6).
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Highway 407 Act, 1998, S.O. 1998, c. 28
Page 1 of 1
Highway 407 Act, 1998
S.0.1998, CHAPTER 28
Consolidation Period: From December 31. 2012 to the e-Laws currency date.
Last amendment: 2006, c. 21, Sched. F, s. 136 (1).
http://www.search.e-Iaws.gov.on.ca/en/isysquery/c7fea56e-48f2-451h-~41
1 1 /1 ()f")() 1 A
Highway 407 Act, 1998, S.O. 1998, c. 28
Page 1 of 1
Failure to pay toll- non-validation of vehicle permit
22. (1) If a toll, and the related fees and interest, are not paid within 90 days of the day a
person receives a notice of failure to pay under section 16, the owner may notify the Registrar of
Motor Vehicles of the failure to pay. 1998, c. 28, s. 22 (1).
Method of giving notice
ill Any notice to the Registrar of Motor Vehicles under this section may be given in
writing, by direct electronic transmission or by any other prescribed method. 1998, c. 28, s. 22
(2).
Notification
ill The owner shall promptly inform the person who received notice of failure to pay
under section 16 that notice has been given to the Registrar of Motor Vehicles under subsection
(1). 1998, c. 28, s. 22 (3).
Registrar's action
ill If the Registrar of Motor Vehicles receives notice under subsection (1), he or she shall,
at the next opportunity, refuse to validate the vehicle permit issued to the person who received
the notice of failure to pay under section 16 and refuse to issue a vehicle permit to that person.
1998, c. 28, s. 22 (4).
Same, if dispute
ill The Registrar of Motor Vehicles may act under subsection (4) even though the person
who received the notice of failure to pay under section 16 has disputed his or her obligation to
pay under section 17 or has appealed a decision of the owner under section 19. 1998, c. 28, s. 22
(5).
When toll is paid
(§} If notice has been given to the Registrar of Motor Vehicles under subsection (1) and
the toll and related fees and interest are subsequently paid, the owner shall immediately notify
the Registrar of the payment. 1998, c. 28, s. 22 (6).
Same
ill If the Registrar of Motor Vehicles is notified by the owner that the toll, fees and
interest have been paid or is notified by the dispute arbitrator that the person is not responsible
for paying the toll, fees and interest, the Registrar shall,
(a) validate any vehicle permit that he or she refused to validate under subsection (4);
(b) issue a vehicle permit to a person if it was refused under subsection (4). 1998, c. 28,
s. 22 (7).
http://www.search.e-laws.gov.on.ca/en/isysquery/c7fea56e-48f2-453b-a43...
11/10/2014
autoroute 407 (Loi de 1998 sur 1'), L.O. 1998, chap. 28
Page 1 of 1
Loi de 1998 sur l'autoroute 407
L.O. 1998, CHAPITRE 28
Periode de codification: du 31 decembre 2012 ala date a laquelle Lois-en-ligne est a jour.
Derniere modification: 2006, chap. 21, annexe F, par. 136 (1).
http://www.e-1aws.gov.on.ca/htm1/statutes/french/e1aws_statutes_98h28_f....11/10/2014
autoroute 407 (Loi de 1998 sur 1'), L.G. 1998, chap. 28
Page 1 of 1
Defaut de payer Ie peage : non-validation du certificat d'immatriculation
22.( 1)Si un peage et les frais, droits et interets y afferents ne sont pas payes dans les 90
jours de la reception d'un avis de defaut de paiement prevu a l'article 16 par une personne, Ie
proprietaire peut aviser Ie registrateur des vehicules automobiles de ce defaut de paiement. 1998,
chap. 28, par. 22 (1).
Methode de remise de l'avis
(2)Tout avis au registrateur des vehicules automobiles vise au present article peut etre
donne par ecrit, par transmission electronique directe ou par toute autre methode prescrite. 1998,
chap. 28, par. 22 (2).
Notification
(3)Le proprietaire informe promptement la personne qui a recu l'avis de defaut de
paiement prevu a I' article 16 que l' avis a ete donne au registrateur des vehicules automobiles en
vertu du paragraphe (1). 1998, chap. 28, par. 22 (3).
Mesures prises par Ie registrateur
(±)S'il recoit l'avis prevu au paragraphe (1), Ie registrateur des vehicules automobiles, ala
prochaine occasion, refuse de valider Ie certificat d'immatriculation de vehicule delivre a la
personne qui a recu l' avis de defaut de paiement prevu a I' article 16 et refuse de lui delivrer un
certificat d'immatriculation de vehicule. 1998, chap. 28, par. 22 (4).
Idem, contestation
illLe registrateur des vehicules automobiles peut agir en vertu du paragraphe (4) meme si
la personne qui a recu l' avis de defaut de paiement prevu a l' article 16 a conteste son obligation
de payer en vertu de l'article 17 ou a interjete appel d'une decision du proprietaire en vertu de
l'article 19. 1998, chap. 28, par. 22 (5).
Moment du paiement du peage
®Si un avis a ete donne au registrateur des vehicules automobiles en vertu du paragraphe
(1) et que Ie peage et les frais, droits et interets y afferents sont payes par la suite, Ie proprietaire
avise immediatement Ie registrateur de ce paiement. 1998, chap. 28, par. 22 (6).
Idem
Q}S'il est avise par Ie proprietaire que Ie peage et les frais, droits et interets ont ete payes
ou qu'il est avise par l'arbitre des differends que la personne n'est pas redevable du paiement de
ceux-ci, Ie registrateur des vehicules automobiles:
a) valide tout certificat d'immatriculationde vehicule qu'il a refuse de valider aux termes
du paragraphe (4);
b) delivre un certificat d'immatriculation de vehicule a une personne si celui-ci lui a ete
refuse aux termes du paragraphe (4). 1998, chap. 28, par. 22 (7).
http://www.e-Iaws.gov.on.ca/html/statutes/french/elaws_statutes_98h28_f....l1/10/2014
Page 1 of2
ExecutionAct - O. Reg. 657/05
t")=-.;
POntaria
ServiceOntario
Francais
Execution Act
ONTARIO REGULATION 657/05
EXEMPTIONS
Consolidation Period: From June 22, 2006 to the e-Laws currency date.
Last amendment: O. Reg. 657/05.
This is the English version ofa bilingual regulation.
Exemptions, prescribed amounts
1. For the purposes of section 2 of the Act, an amount set out in Column 2 of the Table to
this section is prescribed for the chattels described in the paragraph of section 2 of the Act set
out in Column 1 of the Table opposite the prescribed amount.
TABLE
Item
Column 1
Paragraph of s. 2 of the Act
1.
loarazraph 1
2.
Iparagraph 2
3.
4.
loarazraph 3
loarazraph 4
5.
Iparagraph 6
Column 2
Prescribed amount
$5,650
$11,300
$11,300
$28,300
$5,650
O. Reg. 657/05, s. 1.
2. Revoked: O. Reg. 657/05, s. 2 (3).
Francais
Back to top
http://www.search.e-Iaws.gov.on.calenlisysquery/ac47268d-5b85-4392-a649-a8dee290d7...11/10/2014
Page 1 of 1
execution forcee (Loi sur 1')- Regl. de l'Ont, 657/05
_r'~
ty Ontario
ServiceOntario
Lois-en-ligne
English
Loi sur l'execution forcee
REGLEMENT DE L'ONTARIO 657/05
EXEMPTIONS
Periode de codification: Du 22 juin 2006 it la date it laquelle Lois-en-ligne est it jour.
Derniere modification: Regl. de 1'Ont. 657/05.
Le texte suivant est fa version francoise d'un reglement bilingue.
Exemptions: sommes prescrites
L Pour l'application de 1'article 2 de la Loi, une somme indiquee dans la colonne 2 du
tableau du present article est prescrite it l' egard des biens meubles decrits it la disposition de
1'article 2 de la Loi indiquee dans la colonne 1 du tableau en regard de la somme prescrite.
TABLEAU
Point
Colonne 1
Disposition de l'art. 2 de la Loi
Colonne 2
Somme prescrite
1.
2.
3.
4.
5.
disposition 1
disposition 2
disposition 3
disposition 4
disposition 6
5650 $
11 300 $
11 300 $
28300 $
5650 $
Regl. de 1'Ont. 657/05, art. 1.
2. Abroge : Regl. de 1'Ont. 657/05, par. 2 (3).
English
Retour au debut
http://www.e-laws.gov.on.ca/html/regs/french/elawsJegs_050657_f.htm
11/10/2014

Respondent Superintendent-of-Bankruptcy

Transcription

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