Background:
In 2019, Samra Enterprises Inc. and Colossal Fortune Holdings Ltd. initiated foreclosure proceedings against 1022724 B.C. Ltd., claiming default on a mortgage of $1,580,000. A vesting order was issued in March 2021, allowing Madan Joshi to purchase the property for $2,238,000. However, after the vesting order, the original mortgage was redeemed using funds from new lenders, Tri City Nominee Services Ltd. and Tri City Mortgage Fund Ltd. This redemption, along with the discharge of the original mortgage, created legal disputes over ownership and the validity of the vesting order.

Legal Issues:
The key issues were whether the right of redemption had been extinguished by the vesting order, the validity of the mortgage redemption that occurred after the vesting order, and whether exceptional circumstances justified setting aside the vesting order. Additionally, questions arose about the enforceability of the vesting order and if the court’s inherent jurisdiction should be used to declare it of no force or effect.

Court's Decision:
The court found that the redemption of the mortgage after the vesting order had caused a legal quagmire. It declared that the vesting order was of no force and effect, setting it aside due to the complexities and changes in circumstances.

Costs:
The judgment invited parties to submit written submissions on costs within 30 days. The court did not specify an award amount in its decision but allowed for future determination based on those submissions.