The plaintiff, PCNIX Inc., brought a motion seeking a declaration that a default judgment obtained against the defendants, TECPARTNER Inc. and Edwin Masango, survived Masango's bankruptcy under sections 178(1)(d) and (e) of the Bankruptcy and Insolvency Act.
The court dismissed the motion, finding that the original statement of claim and the trial judge's findings did not contain sufficient factual allegations of fraud, embezzlement, misappropriation, defalcation, false pretenses, or fraudulent misrepresentation to bring the debt within the purview of the specified BIA sections.
The court emphasized that for a debt to survive bankruptcy, the underlying pleadings must contain specific factual particulars, even if fraud is not explicitly pleaded as a cause of action.