In the matter of Receivership of Railside Development Limited (Supreme Court of Nova Scotia In Bankruptcy and Insolvency)

A condominium builder became insolvent and a receiver was appointed under the Bankruptcy and Insolvency Act.  Unpaid contractors had registered builder’s liens. The receiver sought an order permitting registration of the condominium without consent of the encumbrancers (including the builder’s lien claimants). 

The Court granted an order authorizing the receiver to register the condominium, but refused to dispense with the consent of the builder’s lien claimants.  The Court said that the encumbrancers’ consent was required under Section 11(1)(b) of the Condominium Act, and this consent could be unreasonably withheld.  The Bankruptcy and Insolvency Act did not give the Court jurisdiction to dispense with this required consent.