Background: Castle Building Centres sought bankruptcy orders against Steven and Jeff Parkes under s. 43(1) of the Bankruptcy and Insolvency Act (BIA) for $2.2 million owed due to personal guarantees related to their company, The Rehill Company Ltd., which went bankrupt in 2021.

Parkes’ Arguments:

1. No Debt Owed: They claimed Castle waived Jeff’s guarantee and that the debt was actually owed to a subsidiary, CBS.
2. Improper Purpose: Alleged Castle was using bankruptcy to intimidate other members.
3. Medical Hardship: Jeff argued his poor health should prevent the bankruptcy order.
4. Bilateral Dispute: Asserted no general insolvency affecting other creditors.

Court’s Findings:

• Debt Validity: The court ruled prior judgments were final and binding (res judicata) and could not be re-litigated.
• Waiver & CBS Claims: Found no evidence of waiver or that the debt was owed to CBS.
• Set-Off for Rebates: Dismissed for lack of supporting evidence.
• Discretion Under s. 43(7): The court held that Castle had a valid purpose in enforcing the debt and the Parkes’ failure to cooperate with enforcement justified the bankruptcy orders.

Conclusion: The bankruptcy orders were granted, as the Parkes failed to show sufficient cause to oppose them. The court emphasized Castle’s right to enforce the debt after repeated non-payment and resistance by the Parkes.

no new monetary award for damages or costs for this specific decision.