In Les Magasins C.P.C. Inc. (Proposal of), 2012 QCCS 4192, the
Quebec Superior Court confirmed that a lessor can require payment
of rent rateably post-Notice of Intention on the basis of the
monthly rent set out in the lease, from the day after the filing of
the Notice of Intention by the lessee.
Groupe Immobilier Bel-Rive Inc. (the "Lessor") leased
out to the debtor Les Magasins C.P.C. Inc. (the "Lessee")
commercial space in which it operates retail stores. On February 3,
2012, the Lessee filed a Notice of Intention to Make a Proposal to
its creditors pursuant to the Bankruptcy and Insolvency Act (the
"BIA"). The Lessee paid to the Lessor the rent for March
and subsequent months, but refused to pay the rent for February.
The Lessor therefore asked the Court whether the BIA allows the
Lessor to collect from the Lessee the unpaid rent for the February
4–29, 2012 period.
Pursuant to the BIA, a creditor cannot require its debtor to pay
amounts owing if said amounts predate the filing of the Notice of
Intention to Make a Proposal. However, a creditor can require
immediate payment for goods, services or use of leased property
provided after the filing of the Notice of Intention. Consequently,
a lessor can collect from its lessee any rent that will be owed
after the filing of the Notice of Intention. Nevertheless, the BIA
does not specify whether a lessor can collect the rent for the
month during which a lessee filed its Notice of Intention.
The Court's decision is that the Lessor can collect from the
Lessee the unpaid rent for the February 4–29, 2012
The Court finds that it is the posteriority of the use of leased
goods in relation to the Notice of Intention that determines
whether the rent for this use must be paid, without having to take
into account the date on which the rent would be payable under the
The Court is also relying on a decision of the Ontario Superior
Court in In Re Cosgrove-Moore Bindery Services Limited, 2000 CanLII
22377 (ON SC), which established that the lessor can require the
immediate payment of rent on a per diem basis, as of the day after
the filing of the Notice of Intention.
Consequently, a lessor can collect rent rateably on the basis of
the monthly rent set out in the lease, from the day after the
filing of the Notice of Intention.
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