The bankrupt appealed a Master's order granting a conditional discharge that required him to pay $284,346 in accumulated surplus income and an additional $5,000 per month for six years.
The bankrupt argued the Master erred by treating the additional payments as a recalculation of surplus income under section 68 of the Bankruptcy and Insolvency Act.
The Superior Court of Justice dismissed the appeal, finding that the Master properly imposed the additional payments as a condition of discharge under section 172, not as a recalculation of surplus income.
The court held the condition was reasonable given the bankrupt's substantial ongoing disability income, his failure to pay surplus income during the bankruptcy, and his lack of remorse for misappropriating $5 million from clients.
