Denault J.: — In the Court’s opinion, there is a serious question to be tried in the appeal filed against the orders of July 25 and 28, 1995. It appears that the judge simply quashed the demands for payment sent by the Department of National Revenue even though the motion before the judge, which was made by Bâtiment Fafard International Inc., asked only for an interim order to inform those concerned that they were not required to pay.
The pleadings setting out the issue between the parties - the demands for payment of June 29, 1995 — seek the repayment of precise sums owed to Bâtiment Fafard International Inc. by third parties to pay the tax debtor’s liability of $119,312.85. It appears from Daniel Thibault’s solemn declaration on August 18, 1995 that following the orders of July 25 and 28, 1995, which are being appealed, the amounts of $37,929.94 and $207,664.94 were paid respectively by Bois Ouvrés Waterville Inc. and SAC Drummond Inc. to Bâtiment Fafard International Inc. Furthermore, two payments of $53,416.41 each will be payable on September 1 and 15, 1995 by SAC Drummond Inc., for a total of less than the tax debtor’s liability. To the extent that payments have already been made by the third parties and that the balance owed on the contracts will in all likelihood be paid before the Federal Court of Appeal has ruled on whether the orders being appealed were justified, the Department of National Revenue could suffer irreparable harm if the Court does not suspend the orders being appealed, especially since the evidence shows that there is already a substantial amount of tax owed by Bâtiment Fafard International Inc. and that there are, to say the least, problems with the solvency and operating methods of this company.
Moreover, the Court is persuaded that in the circumstances disclosed by the evidence it is in the interest of justice to suspend the orders.
For these reasons, the Court:
ALLOWS the respondent’s motion;
SUSPENDS the order made by Rouleau J. on July 25, 1995 and the amended order made on July 28, 1995 pending the disposition of the appeal filed by Her Majesty the Queen against the said orders;
The suspension of these orders is subject to the following terms and conditions:
1. Bois Ouvrés Waterville Inc., 525 rue Principale Nord, Waterville, Québec JOB 3H0, and SAC Drummond Inc., 192 chemin de la Station, St-Germain de Grantham, Québec JOC 1K0, shall not pay any sum that they owe or may owe to Bâtiment Fafard International Inc. pending the disposition of the appeal filed by Her Majesty the Queen against the said orders;
2. The said companies shall pay into Court any amounts that they owe or may owe to Bâtiment Fafard International Inc. pending the disposition of the appeal filed by Her Majesty the Queen against the said orders;
3. Bâtiment Fafard International Inc. shall complete all the work in respect of which it has incurred contractual obligations toward Bois Ouvrés Waterville Inc. and SAC Drummond Inc. and, once the work is completed, shall forward the invoices relating to the work so that these companies can then pay into Court the amounts owed to Bâtiment Fafard International Inc.;
Costs to follow the result of the case.
Motion allowed.
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