msi Spergel Inc. v. I.F. Propco Holdings (Ontario) 36 Ltd., 2013 ONCA 550 (statutory variation of time limits, s. 20)

The Ontario Court of Appeal’s decision in msi Spergel Inc. v. I.F. Propco Holdings (Ontario) 36 Ltd., 2013 ONCA 550 confirms that a stay of proceedings under the Bankruptcy and Insolvency Act (“BIA”) does not suspend the two year limitation period on a motion to set aside a preference.

In Spergel, the trustee brought a motion under section 95 of the BIA to declare a payment made by a bankrupt to a creditor for $1.1365 million constituted a preference and argued unsuccessfully that the limitation period was suspended under section 20 of the Limitations Act as a result of the appeal of the bankruptcy order.

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