7. Where a libel was filed against a ves- sel to recover advances made in a for- eign port, on the request of her master, for the purpose of paying off a bot- tomry bond, and on the return of the process no owner appeared for her, but a mortgagee appeared, and, on his consent, the vessel was sold under a venditioni exponas, and the proceeds paid into court, and thereupon the mortgagee filed a claim and answer, not only joining issue with the allega- tions of the libel, but setting up his claim as mortgagee, and praying that his claim be paid out of the proceeds, which were insufficient to satisfy both claims:
Held, That the proceeding had been made one to effect the proper distribution of the proceeds of a ves- sel, already condemned and sold at the suit of the libellant, and it was, therefore, subject to the considera- tions which control Courts of Admi- ralty in the distribution of money in the registry. The Bark Acme, 386
See CHARTER PARTY, 3. COSTS, 4. LIEN, 1, 8.
12. Where an assignee examines a bank- rupt, under the twenty-sixth section of the Bankruptcy Act, the assignee must pay the register's fees, whether he has assets of the bankrupt or not.
If the examination is for the bene- fit of creditors, the expenses of it must be advanced or secured, under the twenty-eighth section of the Act, by the creditors.
If the examination is one of the steps preliminary to the bankrupt's discharge, the expenses must be ad- vanced or secured by the bankrupt.
These expenses do not include any compensation to the assignee. Pro. vision may be made for securing such compensation to him.
13. Where one member of a firm alone filed his petition in bankruptcy, in- dividually and as a member of the firm, and the register adjudged him a bankrupt individually and as a mem- ber of the firm, and also adjudged the firm a bankrupt:
Held, That this latter action of the register was erroneous. In such a case, notice of the filing of the peti- tion must be given to those members of the firm who have not joined in it, or assented to it, as if the proceed- ings were involuntary against the firm. Lewis's Case,
14. Where, afterward, the other member of the firm presented a petition praying that both of them might be adjudged bankrupts, and that he might have leave to join in the first petition:
Held, That this petition might be taken as expressing the assent of the petitioner to the petition of the other partner, and to validate the adjudica- tion of bankruptcy against the firm;'
That it was not necessary for him to otherwise join in the first petition. The proceedings as to his individual creditors would be had under his pe-
17. Where creditors applied to have the proceedings sent before another register than the one to whom the case had been referred, on the ground that the register had interfered in choice of an assignee, the court granted the application, without, how- ever, questioning the motives of the register in what he had done, but be- cause the creditors, who had made affidavits in support of the applica- cation, and their attorney, ought not to be compelled by the court, after all that had transpired, to continue the proceedings before the register in question. id.
18. Where creditors, who had proved their debts, served on the register a no- tice protesting against the proof of any claims against the estate by certain other creditors, and requesting to be notified if any such claims were tendered for proof:
Held, That they had the right to serve such a notice. id.
19. Where the bankrupts were examined by the assignees, and creditors filed specifications of opposition, which the court held irregular in form, and al- lowed them time to file new ones, and in the interim they applied for an order that the bankrupts attend and be examined under section twenty-six
of the act, several months having elapsed since the proofs of the cred- itors' debts, and no reason for requir- ing a new examination being shown: Held, That the application must be denied. Isidor & Blumenthal's Case, 123
20. Where a witness, called for examin- ation under the twenty-sixth section of the Bankruptcy Act, objected to being examined, on the ground that there was no authority to examine a witness under the Act unless there was a question in controversy to be settled by testimony, and not until after the examination of the bankrupt himself, but, without insisting on the objection, submitted to an examina- tion, and the register certified the question, involved in his objection, to the court:
Held, That the objection was frivo- lous;
That, after the witness had waived his objection, there was no question to question to be certified, and the regis- ter should have refused to give a cer- tificate. Fredenberg's Case,
25. Where a bankrupt was arrested in an action in a State court on allega- tions of fraud in contracting the debt, to recover which the action was brought, and gave bail, and applied to this court, on affidavits denying the allegations of fraud, for an order dis- charging him from arrest, and dis- charging the bail:
Held, That the court was competent to give him the relief sought, provided his arrest was founded on a debt from which his discharge in bankruptcy would release him.
That the court must inquire into that question of fact, and decide it on this application. Glaser's Case, 180
26. A Bankruptcy Court, in determin-
ing the question whether the arrest of a bankrupt is founded on a debt or claim from which his discharge would not release him, as provided by the twenty-sixth section of the Bank- ruptcy Act, can look only at the papers which were before the State Court, as the foundation of the arrest. Kimball's Case, 554
27. Where a bankrupt filed his petition, in which there was no allusion to the fact that he was a member of a firm, although the schedule showed debts contracted by him as member of a firm, and that there were credits due to said firm, and he was adjudicated a bankrupt, and an assignee was duly chosen by the creditors, and the bankrupt then presented a petition to the register, stating that he was a member of a firm, and asking leave to amend his petition and schedules so as to allow the other member of the firm to be joined with him, so that he might be discharged from the debts of the firm, which the register refused: VOL. II-38
Held, That the register should have granted his petition. The bankrupt had prayed to be discharged from all his debts, and could not be discharged from the debts of the firm until the partner was brought in. Little's Case,
28. A creditor, who has a security for his debt, may prove his claim for the overplus, without abandoning the security, but must set forth the value of the security, and may vote, on the choice of an assignee, upon such over- plus. Bolton's Case, 189
29. Where a corporation was organized under the laws of the State of New York, and, in a proceeding instituted by the Attorney-General of the State, and restraining the company and its officers from exercising any of its cor- porate powers, was declared insolvent, and an order dissolving it and appoint- ing a receiver was made by the Su- preme Court of the State, and the re- ceiver took possession of the property of the company, and thereupon a peti- tion in involuntary bankruptcy was filed:
Held, That the service of the order to show cause must be made by publi cation;
That the company had suffered its property to be taken on legal process. with intent to defeat the operation of the Bankruptcy Act. The Washington Marine Ins. Co.'s Case,
30. Where specifications of objection to a bankrupt's discharge had been filed, and the creditors then moved for leave to take testimony, which motion was opposed, on the ground that the ground of objection alleged was an assignment made by the firm, of which the bank- rupt was then a member, before the passage of the Bankruptcy Act, and consequently not within the meaning of the twenty-ninth section of the Act:
Held, That the specifications not only alleged such assignment, and that it was fraudulent, but also alleged that the property had remained in the pos- session of some of the assignors ever since the assignment, and that this was done with the knowledge and assent of the bankrupt;
That the court would not, on such a motion, pass upon the question whether
32. Where a bankrupt filed a petition in bankruptcy in the Southern Dis trict of New York, not averring any place of residence, and, on his ex- amination, it appeared that he re- sided with his father, in New Jersey, and had done so since he came from Chicago, four years previous; that he had been engaged in looking after a private matter, with a view to return- ing to Chicago, and that, for about six months back, he had been keeping books for a firm in New York city, and, thereupon, the register declined to make an adjudication of bankruptcy, as having no jurisdiction of the case;
Held, That the register's decision was correct. Magie's Case, 369
33. Where a bankrupt did not reside in the Southern District of New York during the next six months preceding the filing of his petition, but, before his insolvency, had been in business in New York city, and had, during the whole of the said six months, car- ried on business in New York city as the agent and attorney of his brother, in buying and selling merchandise, keeping an office for that purpose with his brother's name upon the sign:
Held, That the petition in bank- ruptcy was properly filed in the South- ern District of New York. Baily's Case, 437
34. Where a merchant, who had resided in New York city for more than twenty years, failed in business, sold his residence in that city, and re- moved his family to New Jersey, and
36. Where creditors opposed the dis- charge of a bankrupt, on the ground that he had procured the assent of cer- tain creditors to his discharge by a pecuniary obligation, and the evidence showed that he had paid to the coun- sel for those creditors, their fees, for services rendered in the matter, amounting to $20, but it also appeared that those creditors had announced that they would not oppose the dis- charge, before any thing whatever was said about his paying their coun- sel fees, and that such payment was not made a condition of their with- drawing further opposition:
Held, That the burden of proof was upon the opposing creditors, and the proof did not sustain the specification. Mawson's Case,
37. Where a creditor, who resided out of the district, had proved his debt in the proceedings, and an order was made that he appear before the register and be examined touching his debt:
Held, That, in case of his disobedi- ence, the court could strike out his claim;
That, if he could not personally at- tend, to be examined in the district, without hardship, the court would provide for his being examined before a register in the district of his resi- dence. Kyler's Case, 414
38. Where an execution had been issued
on a judgment against a bankrupt, and
a levy made under it, and thereupon, on the filing of a petition in bank- ruptcy by the judgment debtor, an in- junction was issued restraining pro- ceedings on the execution, and there- after a motion was made to dissolve the injunction, on which the bankrupt produced affidavits to show that he had no interest whatever in the prop- erty levied on:
Held, That, as the assignee, though notified of the proceedings, had taken no steps to acquire possession of the property, and as it did not appear that the proceedings of the creditor under the execution would affect any one who was entitled to the protection of the court under the Bankruptcy Act, the injunction would be dissolved. Olcott's Case,
39. Where an order was obtained for the examination of a bankrupt and his wife, proceedings on which order were adjourned several times, during which time the bankrupt filed a petition for discharge, and obtained an order to show cause, but nothing was done on the return day of that order, but ob- jections were afterward filed, and thereupon, on the day to which the examination had been adjourned, the bankrupt objected to being examined on the ground that he had applied for his discharge, and the time to file ob- jections to the discharge had expired:
Held, That the adjournment, with- out day, of the proceedings under the petition for discharge, terminated those proceedings, unless a new order was issued;
That the objections to the discharge might stand as properly filed;
That the time to examine witnesses had not expired;
That the time to file objections should be kept open by adjournments of any order to show cause, until a full opportunity for the examination of the bankrupt and his wife, and other wit- nesses, had been given. Seckendorf's Case,
40. Copartnership debts may be proved in proceedings instituted by a single partner, on an individual petition, whether there are any assets of the co- partnership or not. Frear's Case, 467
41. Where a petition in involuntary
An order for the examination of the debtor in proceedings supplemental to execution, under § 292 of the New York Code, is "legal process," within the meaning of the thirty-ninth sec- tion of the Bankruptcy Act. id.
48. Where, in bankruptcy proceedings, a creditor, claiming to hold collaterals as security for an indebtedness of the bankrupts, applied for an order to sell the same, under the twentieth section of the Bankruptcy Act, which was op- posed by the assignee in bankruptcy, on the ground that the creditor had not proved his debt, as required by the twenty-second section of the Act:
Held, That the creditor could sub- stantiate his claim against the bank- rupts, so far as to comply with the re- quirements of the twenty-second sec- tion, without previously ascertaining the value of the securities which he held;
That, as the creditor's right to hold the collaterals was dependent upon his ability to show himself to be a creditor, no permission to sell the col- laterals could be granted until his right to sell them was shown, as re- quired by the twenty-second section of the Act. Bigelow's Case,
44. Where, previous to the passage of the Bankruptcy Act, an attachment had been issued out of the Supreme Court of the State of New York against the property of H., who made a mo- tion to set aside the attachment, which was denied, and he appealed from the order denying his motion to the general term of the court, but the plaintiffs in the suit in the mean time proceeded to judgment and execution, under which funds levied on under the attachment had been paidto the sher- iff, and by him paid to the judgment
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