Stergis v Boucher

The dispute between the debtor, Stergis, and the creditor, Boucher, was adjudicated in the Federal Circuit Court. Boucher, having obtained a judgment against Stergis, sought to enforce it through a bankruptcy notice. The crux of the matter was whether the notice was validly issued as it required payment to Boucher’s solicitors rather than directly to Boucher as the judgment creditor. This divergence from the prescribed procedure under the Bankruptcy Act raised the pivotal question of the notice's compliance with statutory requirements.

The court had to determine if the bankruptcy notice was validly issued under the relevant provisions of the Bankruptcy Act. Specifically, the court examined whether the notice was "in accordance with the judgment or order" as mandated by section 45(2) of the Act. The notice specified payment to Boucher's solicitors, which deviated from the standard procedure requiring payment to the judgment creditor directly. This deviation led to a scrutiny of whether such a requirement invalidated the notice.

In reaching its decision, the court found that the notice did not strictly comply with the statutory requirements. The notice’s requirement for payment to Boucher’s solicitors rather than directly to Boucher was not in line with the judgment or order, and hence, it was deemed invalid. Consequently, the court held that the notice was not validly issued, leading to the dismissal of the petition. No order was made as to costs.