The debtor bought property from a dealer in instalment sales, and the dealer assigned its rights to the appellant bank.
The debtor later made an assignment in bankruptcy and the respondent was appointed trustee.
The bank sent a proof of claim for its reservation of ownership, which the trustee disputed because the bank had not published the reservation within the time limit provided for in art. 1745 C.C.Q. The Supreme Court of Canada held that the reservation of ownership could be set up against the trustee.
The trustee is vested with only the rights the bankrupt had in the property and cannot be considered a third person acquirer for the purposes of art. 1749 C.C.Q.
