Directions for Conservatory Measures to BDO Canada Limited—

Conservatory Measures

What is a conservatory measure?

The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.


In the matter of:
Subhash C. Dhingra and
Dhingra and Associates Inc.

Directions for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)

Whereas the Bankruptcy and Insolvency Act (the Act) provides the Superintendent of Bankruptcy (the Superintendent) with the general power to supervise the administration of all estates and matters to which the Act applies;

Whereas Subhash Dhingra (the trustee) was the holder of an individual license as trustee in bankruptcy;

Whereas Dhingra and Associates was the holder of a corporate licence as trustee in bankruptcy;

Whereas the trustee was the sole practitioner of Dhingra and Associates;

Whereas Ms. Kim Desjardins from the Office of the Superintendent of Bankruptcy was informed by Mr. Muneesh Dhingra that the trustee has been hospitalized since the week May 30, 2011 and that to this date, he has not returned to his office;

Whereas on June 8, 2011, Ms. Desjardins was informed by Mr. Muneesh Dhingra that the trustee's health had further deteriorated;

Whereas on June 10, 2011, Ms. Desjardins was informed by Mr. Muneesh Dhingra that the trustee passed away on June 9, 2011;

Whereas the trustee's current file inventory totals 80 estates (the Dhingra estates);

Whereas according to the 2010 Annual Banking Report, the current estate inventory is comprised of an aggregate amount of approximately $125 000 in the trust bank accounts;

Whereas the Superintendent initially appointed Tammy Turner, and subsequently appointed Avi Koren and Abubakar Khan, all employees of the Superintendent, as Guardian Trustee;

Whereas the Superintendent has deemed it advisable to transfer the estate files in question to a private-sector Trustee;

Whereas BDO Canada Limited has consented to administer the Dhingra estates pursuant to this direction issued under paragraph 14.03(1)(a);

Whereas BDO Canada Limited shall, until discharged or another trustee is appointed in BDO Canada Limited's stead, perform the duties required of a trustee under this Act, but notwithstanding its discharge, BDO Canada Limited remains responsible for the performance of such duties as may be incidental to the full administration of the estates;

Whereas I believe on reasonable grounds that the estates require protection;

Whereas the Superintendent may, for the protection of an estate, exercise the powers set out in subsection 14.03(1) of the Act, in the circumstances referred to in section 14.03(2) of the Act;

Whereas the Superintendent has delegated to me, in accordance with section 14.01(2) of the Act, the powers of the Superintendent as specified at section 14.03(1) of the Act, in the circumstance referred to in section 14.03(2), a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;

Whereas paragraphs 14.03(1)(a) and (b) and 14.03(2)(a) of the Act apply;

I, Kirti Gauthier, in my capacity as delegate for the Superintendent, direct BDO Canada Limited, Guardian Trustee:

  1. To take the necessary steps to administer all estates and estate files previously administered by either Subhash C. Dhingra and Dhingra and Associates Inc. as well as any closed estates that may require further administration and any other of the trustee's files identified by the Official Receiver as requiring further administration;
  2. To keep the said property and records, deeds, books, documents, computerized data, and bank accounts related to such files, to make an inventory of them, to preserve them and administer them in accordance with the sections of the Act;
  3. To continue the administration of these files in accordance with the duties and responsibilities incumbent on trustees in bankruptcy according to the Act.

That these directions take effect immediately and will remain in effect until such time as the undersigned is satisfied that they are no longer required;

That in accordance with section 14.03(3) of the Act, these directions bind BDO Canada Limited, who must comply with them;

That, pursuant to section 14.03(4) of the Act, a person who complies with this direction is not liable for any act done by that person only to comply with this direction.

Signed at the City of Ottawa, Ontario, this 2nd day of May, 2012.

Space to insert signature

Kirti Gauthier
National Manager, Trustee Detection and Compliance

This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.

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