Courts of Justice Act, R.S.O. 1990, c. C.43, s. 101 [as am.]
Mortgages Act, R.S.O. 1990, c. M.40, s. 17
Lisa S. Corne, for applicants.
Eric Golden, for receiver Rosen Goldenberg Inc.
Caitlin Fell, for moving parties Canada Investment Corporation, Canada Capital Corporation Inc., 2399029 Ontario Inc.,
2457674 Ontario Inc. and Terry Wilson.
 DUNPHY J.: — The applicants seek an order for the payment
of three months’ interest pursuant to s. 17 of the Mortgages Act,
R.S.O. 1990, c. M.40 or, in the alternative, under the terms of
their mortgages with the respondents. They are opposed in this
by Canada Capital Corporation, 2457647 Ontario Inc., Canada
Investment Corporation and Terry Wilson as holders of subsequent mortgages.
 For the reasons that follow, I find that the applicants are
not entitled to the three months interest they have claimed on
either ground. There is no general right granted to secured creditors holding mortgagees to claim three months interest post-default. Section 17 of the Mortgages Act was intended as to provide mortgagors with a beneficial option to limit their obligations
in obtaining relief from forfeiture when compared to the former,
harsher rule of equity. By its terms, s. 17 applies only to “persons
entitled to make payment” in respect of a mortgage default.
A receiver — whether creditor-appointed or court-appointed — is
not such a person. Were the claimed distinction between private
receivers and court-appointed receivers to be acknowledged,
potentially beneficial court supervision of receivership proceedings could be unnecessarily discouraged by reason of the potential
diminution of the unsecured estate that might follow.
 There are no facts in dispute and the issue is a narrow
 The applicants held first mortgage security over six properties of the respondents securing a number of loans that had not
been repaid when they became due. The applicants did not elect
to commence any private enforcement proceedings such as power
of sale proceedings or the appointment of a private receiver. They
brought this application seeking the appointment of a receiver
pursuant to s. 243(1) of the Bankruptcy and Insolvency Act, R.S.C.
1985, c. B-3 and s. 101 of the Courts of Justice Act, R.S.O. 1990,
c. C.43. The application was successful and McEwen J. appointed
Rosen Goldberg as receiver in an order dated February 18, 2018.