Krawec v Wheaton

In *Krawec v Wheaton*, the applicant, Mr. Krawec, sought to review a sequestration order made by a Registrar against him. The respondent, Mr. Wheaton, had obtained the sequestration order based on an alleged debt. Mr. Krawec contended that he was solvent at the time the sequestration order was made and sought its annulment.

The primary legal issues before the Court were whether the Registrar’s decision to make the sequestration order was correct, and consequently, whether the sequestration order should be set aside and annulled on the grounds of the applicant's solvency.

Judge Riethmuller found that Mr. Krawec had indeed demonstrated his solvency at the time the sequestration order was made. The Court applied the principles of bankruptcy law, which permit the annulment of a sequestration order if it is proven that the debtor was solvent at the time the order was made, or if the debt on which the order was based was disputed on substantial grounds. The evidence presented established that Mr. Krawec possessed sufficient assets to meet his liabilities.

Consequently, the Court ordered that the sequestration order made against Mr. Krawec be annulled.