Braich v. Clarke
Herkenn Singh Kenny Braich
Law Firm / Organization
Bridgehouse Law LLP (BHL Vancouver)
Lawyer(s)

Benjamin La Borie

Scott William Clarke

Background: On February 27, 2019, Scott William Clarke sold a property in Mission, British Columbia, to Herkenn Singh Kenny Braich for $4,325,000. Braich defaulted on both the first mortgage and the vendor take-back mortgage.

Legal Issues:

Braich challenged the bankruptcy order on three grounds:

  1. The court's finding that he owed Clarke an unsecured debt of at least $1,000.
  2. The determination that he had committed two acts of bankruptcy.
  3. The court's failure to acknowledge that he had sufficient assets to cover his debts.

Court's Findings:

  • The court upheld that Clarke's estimate of his security's value was not "sham or absurdly low" and accepted him as an unsecured creditor.
  • The bailiff’s endorsement showed that no property could be seized, indicating an act of bankruptcy under section 42(1)(e) of the Bankruptcy and Insolvency Act (BIA).
  • Unpaid judgments to both Clarke and the Sangha Creditors evidenced that Braich was not meeting his liabilities generally as they became due, constituting another act of bankruptcy under section 42(1)(j) of the BIA.
  • The court found no reversible errors in the judge's conclusions and dismissed Braich's appeal.

Conclusion: The appeal was dismissed. The court adjudged Braich bankrupt, relying on established legal principles and evidence. The total amount of the debt was at least $1,000, but specific costs or awards in favor of Clarke were not detailed in the summary.

Court of Appeals for British Columbia
CA48686
Bankruptcy & insolvency
Respondent