Background:

• The defendants, Rokulan and Anojan Thangavel, purchased a home from the plaintiff, financed partly by a $500,000 vendor take-back mortgage (VTB).
• After moving in, they discovered construction defects. The plaintiff undertook repairs, and the defendants moved out.
• The defendants defaulted on the VTB. The plaintiff sued for possession and $572,691.16 plus 18% interest.
• The plaintiff obtained a substitute service order after failed attempts at personal service. The defendants did not respond, leading to a default judgment on October 28, 2021.
• The plaintiff initiated power of sale proceedings, resulting in the property's sale.

Court’s Decision:

1. Release of Sale Proceeds:

   • $249,833.83 released to the defendants, with $28,000 deducted for costs owed to the plaintiff.

2. Vacating the Writ of Execution:

   • The plaintiff consented to lifting the writ.

3. Setting Aside Default Judgment:

   • Denied under the Mountain View Farms test:
     • Motion not brought promptly (two-year delay).
     • No plausible explanation for failure to respond.
     • Defendants had an arguable defense regarding VTB charges but no viable construction defect claim due to limitation periods.
     • Greater prejudice to the plaintiff if judgment was set aside.
     • Granting relief would undermine justice due to defendants’ avoidance of service.

4. Consolidation with a Related Application & Summary Judgment Motion:

   • Both denied.

Costs:

• No costs awarded due to the plaintiff’s failure to file motion materials.

Final Outcome:

• Default judgment stands; defendants may still challenge VTB charges through a related application?.