December 17, 2020

Filing Type:

Trustee: Fuller Landau

Applicant: Home Trust Company ("Home Trust")

Applicant Counsel: Gowling WLG



2335779 Ontario Inc., a Mississauga, Ontario-based company which owns and oversees the development of residential real estate, had its interest in real property located at 78 Trafalgar Road, Oakville, Ontario, placed under receivership on December 17 on application by Home Trust Company ("Home Trust"), owed approximately $2.3 million. In 2015 and 2016, Home Trust extended a mortgage loan in favour of the company and obtained a $5.1 million charge against the Oakville property as security for the loan. The company agreed that Home Trust would have the right to seek the appointment of a receiver upon default under the terms and conditions of the mortgage. In April 2020, the company defaulted on its payments under the mortgage and in June 2020, Home Trust demanded repayment of the indebtedness in full. To date, no payments have been made to Home Trust and it appears that the company has not made any attempts to refinance the indebtedness or sell the Oakville property. Home Trust has lost trust in the ability of the company's management to develop and implement a plan to repay its indebtedness, especially given the alleged illegal wrongdoings of the company's principal, Moninder Khundal, and his associates. The immediate appointment of a receiver will provide necessary stability, transparency, and oversight in the sale of the Oakville property. Fuller Landau was appointed receiver and manager. Gowling WLG is counsel to the applicant.