Is there a creditor who is not a defendant in a sheriff’s action?

Saskatchewan, Canada


The following excerpt is from Cuming v. Stroud, 1961 CanLII 268 (SK CA):

The argument on its behalf is that, there being no definition of “creditor” in The Creditors’ Relief Act, all creditors who are parties to the proceeding taken by the sheriff for relief under the rules relating to interpleader, are by virtue of that fact, and of our Rules of Court, liable to contribute to the costs of the contest unless they give notice of admission of the claimants’ title. Vide Edwards v. Sewell (1915) 33 WLR 271.

I am of the opinion that Edwards v. Sewell, supra, is not authority for the proposition stated. Sec. 12 of The Creditors’ Relief Act, quoted supra, specifically provides that only those creditors who are parties to the interpleader issue, and who agree to contribute pro rata in proportion to the amount of their executions or certificates to the expense of contesting adverse claims, shall be entitled to share in any benefit resulting from the contests. Creditors who refuse to accept the risk of disputing the adverse claims in the issue, if one is directed, are in a deferred position.

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