Canada to India via Germany on Expired Canadian Visa [duplicate]

Whether or not you need a visa to transit Europe on your way to India is separate from your status in Canada as citizenship (rather than residence status) is usually more relevant.

There's loads of questions here that deal with that, here are a couple:
- Transit visa required ?
- Schengen transit visa ?

From one of the above answers it seems you won't need a visa to transit Germany because you hold a US B1 visa, but as @pnuts suggested that means your daughter might need one.

Canada doesn't do exit checks so you probably won't have any issues leaving, but you will when you come back if your permit isn't up to date

No you will not be allowed to board your flight to Germany. You need to have a valid visa in the country you are boarding from. In case you are not allowed entry into the Schengen, you will be deported to the place your flight originated from. Hence even if you have a valid docs for Germany and India, you will not be allowed to travel to Germany.