Nature of the Motion:

• Mr. Naeem sought leave under the receivership order and the Bankruptcy and Insolvency Act (BIA) to sue GTL for gross negligence in its duties as a receiver and trustee.
• Alleged failures included mismanagement of assets, resulting in their diminished value, causing Mr. Naeem’s personal guarantees to be called by Royal Bank of Canada (RBC).

Background:

• GTL was appointed receiver in 2018 for companies in financial distress under the Companies’ Creditors Arrangement Act (CCAA).
• GTL handled multiple sales processes for company assets, with approvals from the court. However, asset value significantly diminished due to vandalism, fires, and failed sales.
• RBC secured judgments against Mr. Naeem for over $1 million under personal guarantees for corporate debts.
• Mr. Naeem claimed GTL’s negligence resulted in both asset devaluation and his liability under guarantees.

Key Findings:

1. Lack of Evidence:
   • GTL’s sales efforts and processes were court-approved and diligent. Asset losses primarily affected RBC, not Mr. Naeem.
2. Causation Issues:
   • Failed transactions were attributed to 703779 N.B. Ltd., a buyer, not GTL. Courts had previously ruled GTL's conduct in managing sales was appropriate.
3. Previous Rulings:
   • Mr. Naeem’s arguments about his personal guarantees and GTL’s negligence were rejected in prior litigation, making this motion a collateral attack.
4. Limitations Period:
   • All alleged acts of negligence occurred before December 2019. The motion filed in 2023 exceeded the two-year statutory limitation.

Decision:

• The motion was dismissed as the claims lacked merit, were time-barred, and amounted to a collateral attack on prior judgments.
• Costs of $7,500 plus disbursements were awarded to GTL.