Can a trustee in bankruptcy make use of provincial legislation in gathering in the assets of a bankrupt?

Alberta, Canada


The following excerpt is from Principal Plaza Leaseholds Ltd. v. Principal Group Ltd., 1996 CanLII 10444 (AB QB):

In his analysis as to validity, Vancise J.A. stated at p.446 The trustee in bankruptcy is utilizing the scheme of priorities established under the provincial legislation in gathering in the assets of the bankrupt. That a trustee can make use of a valid provincial legislation when administering the estate of a bankrupt was decisively determined in robinson v. countrywide factors ltd. (supra)

The court referred to Robinson v. Countrywide (supra) which held, inter alia, that a trustee could make use of valid provincial legislation when administering the estate and, further, that if there was overlap, the federal legislation would prevail. However, provincial jurisdiction over property and civil rights should not be measured by the reach of bankruptcy and insolvency legislation, and an analogy to the provincial law in relation to criminal law powers was drawn by the court.

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