Newmont Canada Corporation v. Canada, 2012 DTC 5138 [at at 7292], 2012 FCA 214 -- summary under Paragraph 12(1)(c)

The taxpayer agreed to settle a loan owing to it of over $8 million plus accrued but unpaid interest through the payment to it by the debtor of $1 million. The settlement agreement provided that the $1 million repayment proceeds were to be "applied on account of the principal amount of the loan." This was enough to make out a prima facie case that the taxpayer did not receive payment of any of the unpaid interest. As the Minister had not provided evidence to contest this case, the taxpayer was entitled to a bad debt deduction in respect of the unpaid interest.