This case involved a fish company that had loaned money to an individual for the purchase of a fishing licence. The fish harvester made an assignment into bankruptcy, but did not list his fishing licence as an asset. Despite a request by the fish company, the Trustee in Bankruptcy refused to take legal proceedings against the licence. Based upon an apparent consent received from an encumbrance holder and the court taking judicial notice of the fact that "commercial fishing licences can be sold to satisfy outstanding debts and judgements and the Department of Fisheries and Oceans Canada DFO will issue new licences if it receives the appropriate documentation relinquishing and requesting re-issuance of fishing licences …" the court granted an order under s. 38 of the Bankruptcy and Insolvency Act allowing the fish company to take proceedings against the discharged bankrupt. The court also enjoined the bankrupt from disposing of its licence pending completion of the legal proceedings to be commenced by the applicant against the licence.
Editor’s note: For a related proceeding where the Superior Court confirmed the Bankruptcy Court order enjoining the Bankrupt from selling its licence see: Beothic Fish Processors ltd. v. Burt, 2009 NLTD 65 [link]