Background:

• Suleiman loaned a total of $500,000 USD and $250,000 CAD to Redragon Oil & Gas Systems International Inc., with promissory notes guaranteeing repayment.
• The Respondents, Venkataraman and Hodgson, were executives at Redragon and personally guaranteed these loans.
• After defaulting on repayments, the parties reached a settlement, but the Respondents eventually declared bankruptcy in 2017.
• Suleiman sought to have the debt survive bankruptcy under sections 178(1)(d) and (e) of the Bankruptcy and Insolvency Act (BIA), arguing the debt was tied to fraud.

Legal Analysis:

• Section 178(1)(d) BIA: Requires evidence of fraud or misappropriation while acting in a fiduciary capacity. The court found no evidence that the Respondents acted in such a capacity or committed fraud by stopping payment on the cheques.
• Section 178(1)(e) BIA: Relates to debts obtained by false pretenses or fraudulent misrepresentation. The court found no evidence of fraud in the original pleadings or judgment, only a breach of contract.

Conclusion:

• The court dismissed the application, concluding that the debt did not survive bankruptcy as no evidence of fraud or fiduciary misconduct was presented. No mponetary award specified.

Costs:

• Submissions on costs were to be made by the parties, with deadlines set for August and September 2024.