The moving party, a creditor of the bankrupt, obtained a section 38 order under the Bankruptcy and Insolvency Act to pursue the partition and sale of a property co-owned by the bankrupt and the respondents.
Following the sale, the parties disputed the distribution of the net proceeds held in trust.
The court determined that the moving party was entitled to its costs for the section 38 application and a one-third share of the proceeds.
The court also ordered the respondents to account for funds they improperly drew from a secured line of credit after the partition and sale order was granted.
The respondents' claims for allowances related to mortgage payments and previous line of credit withdrawals by the bankrupt were dismissed.
