T defrauded H into giving him a mortgage and sold the property at a high price, leaving a surplus between what T owed and what was left over. The crown obtained an order to seize T’s assets. H argued that the surplus money was its own property, not T’s, so that the order did not apply to it. The court held that since the wrongdoing of the borrower could not translate the society into the owner of the entire beneficial interest in the property when the mortgage had not been set aside, the borrower was not a constructive trustee of the surplus for the H.
