The applicant trustee in bankruptcy sought a declaration of entitlement to settlement funds held by a solicitor.
The funds resulted from a fraudulent conveyance action commenced by a judgment creditor against the bankrupt and his wife after the assignment in bankruptcy, without leave of the court.
The court held that the action was subject to the stay of proceedings under s. 69.3 of the Bankruptcy and Insolvency Act and that the settlement funds represented the proceeds of the bankrupt's interest in the property.
The trustee was granted the balance of the funds after accounting for a valid solicitor's lien.
