Return of Article or Equipment (s.24)
Section 24 of the Repair and Storage Liens Act (RSLA), R.S.O. 1990, c. R.25 provides a practical remedy for owners and businesses seeking the immediate return of their property — such as vehicles, machinery, or equipment — when it is being withheld under a lien. Instead of waiting for a full court determination under Section 23, an owner can regain possession quickly by paying the claimed lien amount (or another amount set by the court) into court as security.
This process ensures that owners can continue using their property while still protecting the lienholder’s right to enforce payment.
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Under Section 24, if there is a dispute over the validity or amount of a lien, an owner (or any person entitled to possession) can:
Pay the amount claimed into court as security for the lienholder.
Once security is deposited, the lienholder must release the article back to the owner.
The lienholder may then pursue their claim against the money held in court, instead of holding the property.
This remedy applies whether the lien arises from:
Repairs performed on a vehicle, equipment, or other article; or
Storage fees claimed under the RSLA.
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Immediate possession: Regain use of essential equipment or vehicles without delay.
Business continuity: Prevent disruption to operations when critical machinery or vehicles are tied up in a lien dispute.
Balanced protection: The lienholder’s rights are safeguarded by the money held in court, while the owner is not forced to abandon use of their property.
Strategic option: Owners can use Section 24 as an alternative to a full Section 23 application, depending on circumstances.
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Vehicle Owners: Quickly recover vehicles needed for personal use or commercial fleets.
Business Owners: Ensure critical equipment or machinery is returned promptly, minimizing downtime.
Creditors / Financiers: Protect collateral while ensuring the property remains productive.
Why Choose Haider Khan Legal?
At Haider Khan Legal P.C., we provide comprehensive assistance with Section 24 applications, including:
Advising whether a Section 24 remedy (paying into court) or a Section 23 application (court determination of rights) is the best option.
Preparing and filing the necessary court application and materials.
Representing clients in hearings to determine the proper amount of security.
Coordinating with lienholders and the court to ensure prompt release of property.
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