Main Issues:

1. Approval of Settlement: The Court approved a settlement regarding a construction lien in favor of Gerritts Engineering Limited.
2. Approval of Distribution: The Court approved the distribution for administrative expenses under the mortgage.
3. Approval of Fees: The Court approved the Receiver's fees and legal costs.
4. Interest Claim: The Court denied the mortgagee’s claim for an additional three months of interest, finding it violated Section 8 of the Interest Act.

Key Legal Findings:

• Section 8 of the Interest Act: Prohibits imposing a penalty or increasing interest rates on arrears that exceeds the standard rate on principal money not in arrears. The claim for three months' "bonus interest" upon default was found to violate this section.
• Section 17 of the Mortgages Act: The Court ruled this section was inapplicable to justify the mortgagee's claim for additional interest. It is designed to protect mortgagors, not to provide mortgagees with a right to claim extra interest beyond what is due.

Outcome: The Court rejected the mortgagee's claim for additional interest and directed the Receiver to disallow it. No costs were awarded to any party.