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by Mike Caswell

Bonterra Resources Inc. has suffered a setback in the legal dispute between it and its former president, Nav Dhaliwal, with the Court of Appeal for British Columbia reinstating a $2.18-million garnishing order against the company. The order is only an interim one, with an appeal judge reinstating it long enough for an appeal to go ahead. The judge has, however, found that there could be some merit to Mr. Dhaliwal's appeal. In other words, he may well have a case against Bonterra, at least with respect to the garnishing order.

The ruling is part of a lawsuit that Mr. Dhaliwal and a former director of the company, Richard Dale Ginn, filed on April 8, 2019. The men sought damages stemming from their resignations. They said that they had an agreement in which they would each receive $1.09-million, but Bonterra never paid the money. They are seeking a court order compelling payment.

As part of the case, Mr. Dhaliwal and Mr. Ginn won a garnishing order in which the courts seized $2.18-million from Bonterra's bank account. Bonterra quickly disputed the order, which the men had obtained without notice to the company. The company said that it was far from clear that Mr. Dhaliwal and Mr. Ginn were entitled to the money, and the company asked that the judge terminate the order. Initially, Bonterra was successful in that regard, with the judge vacating the garnishing order on June 20, 2019.

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