Melnychuk (Bankrupt), Re, (1997) 197 A.R. 62 (QB)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: January 14, 1997
• Citations: (1997), 197 A.R. 62 (QB)

Melnychuk (Bankrupt), Re (1997), 197 A.R. 62 (QB)

MLB headnote and full text

In The Matter Of The Bankruptcy of Nick Melnychuk

And In The Matter Of an application by 382330 Alberta Ltd. pursuant to section 38 of the Bankruptcy & Insolvency Act

(Action No. BKCY 49774)

Indexed As: Melnychuk (Bankrupt), Re

Alberta Court of Queen's Bench

Judicial District of Edmonton

Funduk, Registrar in Bankruptcy

January 14, 1997.

Summary:

A bankrupt applied for a discharge from bankruptcy. One of the creditors sought an order under s. 38 of the Bankruptcy and Insolvency Act, allowing it to bring pro­ceedings in its own name against various transactions of the bankrupt that the trustee refused to attack.

The Registrar in Bankruptcy of the Alberta Court of Queen's Bench granted the bankrupt a conditional discharge.

Bankruptcy - Topic 6424

Administration of estate - Actions by creditors - Leave of court - Section 38 of the Bankruptcy and Insolvency Act pro­vided that a creditor could apply for an order allowing it to bring proceedings in its own name against various transactions of the bankrupt that the trustee refused to attack - When Melnychuk applied for a discharge from bankruptcy, a creditor applied for a s. 38 order - The creditor attacked various transaction, including the validity of a quitclaim deed giving back a commercial premises to a mort­gagee by the mortgagor company of which the bankrupt was a shareholder - A Reg­istrar of the Alberta Court of Queen's Bench, In Bankruptcy, declined to give a s. 38 order, where there would be no benefit to the creditor in attacking the transaction - See paragraphs 3 to 73.

Cases Noticed:

Salomon v. Salomon (A.) and Co., [1897] A.C. 22 (H.L.), refd to. [para. 14].

Kosmopoulos et al. v. Constitution Insurance Co. of Canada et al., [1987] 1 S.C.R. 2; 74 N.R. 360; 21 O.A.C. 4; 34 D.L.R.(4th) 208, refd to. [para. 14].

Houle v. Banque Nationale du Canada, [1990] 3 S.C.R. 122; 114 N.R. 161; 35 Q.A.C. 161, refd to. [para. 14].

Yarley (China) Developments Co. v. Amber Equities Inc. et al. (1996), 191 A.R. 52; 43 Alta. L.R.(3d) 239 (Q.B. Master), refd to. [para. 20].

Holthuysen (Trustee of) v. Holthuysen (1986), 49 Alta. L.R.(2d) 25 (C.A.), refd to. [para. 32].

Davis (Bankrupt), Re (1991), 116 A.R. 17; 80 Alta. L.R.(2d) 100 (C.A.), refd to. [para. 32].

Wilson (Bankrupt), Re (1996), 178 A.R. 237; 110 W.A.C. 237; 37 Alta. L.R.(3d) 260 (C.A.), refd to. [para. 32].

Laurentian Bank of Canada v. Woo (Bankrupt) et al. (1994), 163 A.R. 217; 25 Alta. L.R.(3d) 345 (Q.B. Bktcy.), refd to. [para. 32].

McAteer, Re (1982), 32 A.R. 248 (Q.B.), refd to. [para. 37].

Goertz (Bankrupt) v. Goertz et al., [1996] 2 W.W.R. 372; 137 Sask.R. 267; 107 W.A.C. 267 (C.A.), refd to. [para. 39].

Ramgotra (Bankrupt), Re, [1996] 3 W.W.R. 457; 193 N.R. 186; 141 Sask.R. 81; 114 W.A.C. 81 (S.C.C.), refd to. [para. 40].

Purdy v. Colton (1908), 7 W.L.R. 280 (Sask. S.C. en banco), refd to. [para. 41].

Northwest Thresher Co. v. Fredericks (1911), 44 S.C.R. 318, refd to. [para. 41].

Seay v. Somerville Hardware Co., [1917] 1 W.W.R. 1497 (Alta. C.A.), refd to. [para. 41].

Counsel:

D. Bayrak, for the bankrupt;

B. Mielke (Shtabsky Tussman), for 382330 Alberta Ltd.

This application was heard before Funduk, Registrar in Bankruptcy, of the Alberta Court of Queen's Bench, Judicial District of Edmonton, who delivered the following judgment on January 14, 1997.