Stay of civil proceedings pending criminal complaint requires real prejudice, not vague assertions, in winding up matters.

Stay of civil proceedings pending criminal complaints is not automatic; the controlling test is whether continuation would embarrass the defence in the criminal case or otherwise cause prejudice. In this note on winding up proceedings, the court found the petition was summary in nature, the applicant raised only vague claims of prejudice, and no concrete basis was shown for real interference with the criminal trial. The delayed filing of the stay request also suggested an attempt to prolong the matter. The stay application was rejected, and the winding up proceedings were allowed to continue.

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Issues: Whether the winding up proceedings should be stayed pending the criminal complaint arising out of the same transaction.

Analysis: A stay of civil proceedings because of pending criminal proceedings is not an inflexible rule. The controlling consideration is whether continuation of the civil matter is likely to embarrass the defence in the criminal case or otherwise cause prejudice. The winding up petition was summary in nature, the applicant offered only vague assertions of prejudice, and no concrete basis was shown for any real embarrassment in the criminal trial. The delay in moving the stay application also indicated that the request was intended to prolong the matter.

Conclusion: The request for stay was rejected and the winding up proceedings were permitted to continue.

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