The Superior Court of Justice has dismissed an application from Ontario's Attorney General to have cash from a slain woman's life-insurance policy go to the province rather than to the mentally ill husband who killed her.
The province had invoked the Civil Remedies Act to lay claim to $51,000 awarded to Ved Dhingra, who killed his wife Kamlesh in 2006.
Last April, Ontario's top court had ruled the Toronto man could collect on the policy because he was found not criminally responsible due to a mental disorder for bludgeoning and stabbing his long-estranged wife to death.
The case raised questions about what counts as proceeds of crime, with the province arguing in its application that the life insurance payout was proceeds of unlawful activity.
A decision delivered on Tuesday found it would be "would be manifestly harsh and therefore clearly not in the interests of justice to order the forfeiture to the Crown of the insurance proceeds."
Dhingra, now an elderly psychiatric patient subsisting on pension and old age security payments, suffered from a mental disorder for years and was found not criminally responsible for his wife's death in 2008.
He was released from a mental institution in October 2010 and claimed the policy money.