The appellant appealed a Registrar's order that suspended the bankrupt's discharge for one day without imposing any financial conditions, despite her significant income tax debt.
The Superior Court of Justice found that the Registrar erred in law by questioning the validity of the Crown's proven tax claim, which had not been disallowed by the Trustee.
The appeal was allowed, and the bankrupt was ordered to pay $8,000 as a condition of her discharge, balancing the policy objectives of the Bankruptcy and Insolvency Act with her current financial and family circumstances.