Background: Baigel Corp., as trustee of Vesna Kolenc’s bankrupt estate, initiated actions concerning several properties tied to the bankrupt. Defendants Marcello Di Francesco and Gabriela Pierantoni challenged the trustee’s actions under section 37 of the Bankruptcy and Insolvency Act (BIA), claiming they were aggrieved by Marcello’s section 163 examination.

Defendants' Arguments:

• They alleged the trustee failed to disclose pending litigation against Gabriela before examining Marcello.
• Marcello sought to strike parts of his examination transcript, arguing he was uninformed and thus provided incomplete testimony.
• Alternatively, they requested a new examination or correction of Marcello's prior testimony.

Court’s Findings:

• The trustee was not obligated to disclose ongoing actions to Marcello, who was not initially a party.
• Section 163 examinations are investigative tools with broad discretion and are not restricted by civil discovery rules.
• The defendants did not qualify as "aggrieved parties" under section 37 of the BIA, as Marcello’s examination was proper.

Outcome:

• The motion was dismissed as untimely, raised over a year after the initial actions.
• Costs of $10,910.72 were awarded to the trustee on a partial indemnity basis.

Legal Principles:

• Trustees have broad investigative authority under the BIA.
• Section 37 relief is discretionary and requires clear evidence of wrongful conduct, which was not proven here.