Royal Bank of Canada v. Sakthivel
Royal Bank of Canada
Law Firm / Organization
Lee Bowden Nightingale LLP
Lawyer(s)

Gregory Bowden

Aravind Sakthivel
Law Firm / Organization
Unrepresented
terra metal Inc.
Law Firm / Organization
Unrepresented
Justwing Group Inc.
Law Firm / Organization
Unrepresented
Bank of Montreal
Law Firm / Organization
Unrepresented

Key Facts:

  • RBC filed a motion for the release of funds up to $812,000 from a BMO account.
  • RBC claims ownership of these funds, asserting they should be released without the usual judgment enforcement processes.
  • RBC has a judgment against Justwing and Terra Metals Inc. for $966,658.19 plus costs.

Background:

  • Sakthivel, the sole director of Terra Metals, deposited four dishonored cheques into an RBC account and transferred the proceeds to other accounts, including the BMO account.
  • RBC claims Sakthivel controls both Terra and Justwing.

Legal Arguments and Findings:

  • RBC argues for a consent motion but provides no evidence of consent from the Defendants.
  • RBC has frozen the BMO account funds but acknowledges this does not grant them rights to the funds.
  • RBC lacks statutory or common law authority to claim the funds exclusively.
  • No execution search evidence was provided to show other potential claims against the funds.
  • RBC's approach bypasses the usual judgment enforcement process, which includes seizure and garnishment.

Decision:

  • The motion for releasing the funds to RBC is dismissed.
  • Justice Kurz highlights the absence of evidence and authority supporting RBC's claim to bypass standard procedures.

Conclusion:

  • RBC must follow the ordinary process for enforcing its judgment, including serving a writ of seizure and sale or a notice of garnishment on BMO. The motion was dismissed due to insufficient evidence and lack of legal authority to claim the funds directly.
  • No additional monetary award or costs were granted/ordered in the dismissal of this motion.

 

Superior Court of Justice - Ontario
CV-23-1828-0000
Corporate & commercial law
Defendant