The bankrupts and the appellant co-owned two condominium units.
The bankrupts' Statements of Affairs misrepresented the value of the units and the encumbrances, leading the trustee in bankruptcy to discharge without realizing on the assets.
After the trustee's discharge, the appellant obtained discharges of the mortgages, which were effectively unenforceable due to prior litigation.
The trustee learned of the true value, sought reappointment under s. 41(11) of the Bankruptcy and Insolvency Act, and applied for partition and sale.
The appellant opposed, claiming entitlement to the properties.
The Court of Appeal upheld the application judge's decision, finding the trustee was entitled to realize on the assets that existed during the bankruptcy but were not disclosed, and that the trustee was not estopped from doing so.