Background: The case involved an order under the Bankruptcy and Insolvency Act (BIA) approving a reverse vesting order (RVO) to avoid provincial property transfer tax (PTT) for creditors' benefit. Peakhill Capital Inc. sought to sell shares of the insolvent debtor while transferring unwanted assets and liabilities to another entity, retaining valuable real property without transferring title and incurring PTT. The Province of British Columbia argued that this structure improperly avoided PTT.

Legal Arguments/Issues: The Province contended that the judge erred by grounding jurisdiction for the RVO in the BIA, contravening section 72(1) of the BIA, which prohibits abrogation of provincial laws. They argued the RVO usurped the Administrator's authority under the Property Transfer Tax Act (PTTA) and questioned granting an RVO solely for tax benefits. They asserted that section 243 of the BIA did not confer such broad authority.

Held: The court dismissed the appeal, holding that section 243 of the BIA conferred jurisdiction to grant an RVO in a receivership. The court found that the transaction did not undermine the PTTA and that the judge did not err in exercising discretion. The court emphasized that the RVO furthered the BIA's purpose by maximizing returns for creditors while balancing other risks.

Costs/Damages Awarded: The court ruled in favor of Peakhill Capital Inc. and the other respondents. The decision did not specify costs or damages awarded.