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T-1835-80 T-1838-80
Raymond Balestreri and Yves Vincent (Appli- cants)
v.
Luc-A. Couture, in his quality as member and Vice-Chairman of the Restrictive Trade Practices Commission, F. H. Sparling, in his quality as Inspector appointed pursuant to an Application to the Restrictive Trade Practices Commission under s. 114(1) of the Canada Corporations Act for an order directing an investigation of Canadi- an Javelin Limited, and R. S. MacLellan, in his quality as member of the Restrictive Trade Prac tices Commission (Respondents)
Trial Division, Jerome A.C.J.—Ottawa, April 17 and 18, 1980.
Prerogative writs — Prohibition and certiorari — Applica tion for writs of prohibition and certiorari ordering respond ents to discontinue proceedings in connection with an investi gation initiated under the Canada Corporations Act of a corporation incorporated under that Act, but continued under the Canada Business Corporations Act — Whether the proce dural requirements of the former or the latter statute apply — Application dismissed — Canada Business Corporations Act, S.C. 1974-75-76, c. 33, ss. 2, 3(1),(3), 181(6)(c),(d) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 18(a) — Federal Court Rule 319.
APPLICATION. COUNSEL:
J. Nuss, Q.C. and J. Silcoff for applicants. Andre Wery for respondents.
SOLICITORS:
Ahern, Nuss & Drymer, Montreal, for appli cants.
Desjardins, Ducharme, Montreal, for re spondents.
The following are the reasons for order ren dered in English by
JEROME A.C.J.: This application T-1835-80 is pursuant to section 18(a) of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10 and Rule 319 of the Federal Court Rules, for a writ of prohibi-
tion ordering the respondents to discontinue all proceedings in connection with and to cease acting upon orders issued by respondent Couture requir ing the attendance of the applicants before respondent MacLellan on April 15, 1980, at 10:00 o'clock in the forenoon, by reason of the lack or excess of jurisdiction of the respondent Couture to issue the said orders in connection with an investi gation initiated under the Canada Corporations Act, R.S.C. 1970, c. C-32, of Canadian Javelin Limited, a corporation incorporated under the Canada Corporations Act, and which had been continued under the Canada Business Corpora tions Act, S.C. 1974-75-76, c. 33 prior to the issuance of the said orders. These reasons shall equally apply to application T-1838-80 involving the same parties and the same circumstances in an application for a writ of certiorari.
The facts are not in dispute and the submissions centre around a very narrow ground. In May of 1977, an investigation was initiated under the Canada Corporations Act and there is no dispute that the investigation and the statute continue in force to this day. In 1974, Parliament enacted the Canada Business Corporations Act and counsel for the applicant calls attention to the following sections:
2. (1) ...
"corporation" means a body corporate incorporated or con tinued under this Act and not discontinued under this Act;
also
3. (I) This Act applies to every corporation incorporated and every body corporate continued as a corporation under this Act that has not been discontinued under this Act.
and
3....
(3) No provision of the Canada Corporations Act or the Winding-Up Act applies to a corporation.
The Corporation under investigation was con tinued under the provisions of the Canada Busi ness Corporations Act on March 11, 1980 and it is the applicants' submission that the effect of these sections is to now require the Investigator to follow the procedural requirements of the latter rather than the former statute in carrying forward the balance of the investigation. In particular, the application attacks the Investigator's subpoena of
March 21, 1980 and contends that any order for the attendance of witnesses must now be made in accordance with Part XVIII of the Canada Busi ness Corporations Act rather than of the earlier statute.
The Canada Business Corporations Act does not repeal or amend the Canada Corporations Act and both statutes continue in force. This investiga tion which was authorized under the prior statute has been conducted to this point in accordance with the procedures outlined in that statute and in the absence of specific provisions in the more recent Act, in my opinion, the Investigator can continue to do so. Were I left in any uncertainty, which I am not, recourse to the provisions of section 181(6)(c) and (d) of the Canada Business Corporations Act would resolve the matter:
1s1... .
(6) When a body corporate is continued as a corporation under this Act,
(e) an existing cause of action, claim or liability to prosecu tion is unaffected;
(d) a civil, criminal or administrative action or proceeding pending by or against the body corporate may be continued to be prosecuted by or against the corporation; ...
Thus, Parliament has not only refrained from enacting specific provisions which interfere with the authority of the Investigator under the prior statute, but has, in my opinion, in section 181(6)(c) and (d) expressed quite the contrary intention, i.e. that the proceeding may be con tinued unaffected.
ORDER
The application is therefore dismissed with costs.
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