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Gerard Blais (Applicant)
v.
Honourable Robert Andras (Respondent)
Court of Appeal, Thurlow and Pratte JJ., and Choquette D.J.—Ottawa, February 19 and 20, 1973.
Judicial review—Bankruptcy—Superintendent reporting adversely on trustee—Minister restricting trustee's licence— Trustee not informed of prejudicial matter—Failure of natu ral justice— Decision set aside.
Following a report by the Superintendent of Bankruptcy on the conduct of a licensed trustee in bankruptcy the Minister restricted the trustee's licence to the administration of estates then in his hands. The trustee attacked that restriction by a proceeding under section 28 of the Federal Court Act.
Held, as the reports upon which the Minister acted were not made available to the trustee, and as they contained prejudicial matter not set out in the letter by which the trustee was invited to make representations, there had been a failure to observe a principle of natural justice, and the Minister's decision must accordingly be set aside.
JUDICIAL review. COUNSEL:
Pierre Lamontagne for applicant. Robert Cousineau for respondent.
SOLICITORS:
Laing, Weldon, Clarkson, Parson, Gonthier and Tétrault, Montreal, for applicant.
Deputy Attorney General of Canada for respondent.
The judgment of the Court was delivered by
THURLOW J. (orally)—This proceeding began as an application under section 28 of the Feder al Court Act to review and set aside a decision made on June 9, 1972 by which the respondent as Minister of Consumer and Corporate Affairs refused to remove a restriction on the appli cant's licence to act as a trustee under the Bankruptcy Act for the year 1972. The appli cant's licence for the year 1972 has expired but counsel are in agreement that the same restric tion has been imposed, without further hearing, on his licence for the year 1973 for the reasons
which appear in the decision under attack and have requested the Court to deal with the deci sion as if it referred to the 1973 licence on the basis that the circumstances affecting the validi ty of the decision with respect to the 1973 licence are the same as applied in the case of the 1972 licence.
In our view the "faits consignés aux dossiers" referred to in the third paragraph of the decision under attack as part of the material attentively studied in reaching the decision must be regard ed as including the allegations of facts, the allegations of admissions by the applicant and of opportunities to explain his conduct and the interpretations of facts contained in the five reports made by the Superintendent in Bank ruptcy to the Minister dated September 8, 1967, September 12, 1967, February 12, 1968, March 12, 1968 and March 21, 1968 respectively, many of which allegations and interpretations are prejudicial to the applicant. As these reports were not made available to the applicant prior to the making of the decision in question, (he was not even aware of the existence of the last four of them until some time after the commence ment of this application) and as they contain prejudicial matter not set out in the Deputy Minister's letter of May 10, 1972, by which the applicant was invited to make representations with respect to some of the items referred to in them, we are all of the opinion that a failure to observe a principle of natural justice has occurred in the proceeding leading to the deci sion in question and that it should not be allowed to stand. The decision will therefore be set aside and the matter of the restriction on the applicant's 1973 licence will be referred to the Minister of Consumer and Corporate Affairs for determination after an opportunity has been afforded to the applicant to answer all such allegations as are to be considered in reaching a decision as to whether such restrictions should be imposed or maintained.
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