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 period.
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 lease.
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.