marshal might be directed to restore turn the papers into court. Hughes' the vessel to the petitioners, from Case,
85 whom he had taken her:
Held, That, the suit having been 11. An assignee must make his return, discontinued, the court had no longer Form No. 35, when requested by the any possession of the vessel, or juris- bankrupt, when he has not received diction of the suit, or power to grant or paid any money for the estate, the relief prayed for. The Propeller even though he has reason to expect Jack Jewelt,
353 that he shall thereafter receive money on that account.
id. 7. Where a libel was filed against a ves-
sel to recover advances made in a for- 12. Where an assignee examines a bank. eign port, on the request of her master, rupt, under the twenty-sixth section for the purpose of paying off a bot- of the Bankruptcy Act, the assignee tomry bond, and on the return of the must
pay the register's fees, whether process no owner appeared for her, he has assets of the bankrupt or not. but a mortgagee appeared, and, on his If the examination is the bene- consent, the vessel was sold under a fit of creditors, the expenses of it venditioni vzponas, and the proceeds must be advanced or secured, under paid into court, and thereupon the the twenty-eighth section of the Act, mortgagee filed a claim and answer, by the creditors. not only joining issue with the allega- If the examination is one of the tions of the libel, but setting up his steps preliminary to the bankrupt's claim as mortgagee, and praying that discharge, the expenses must be ad- his claim be paid out of the proceeds, vanced or secured by the bankrupt. which were insufficient to satisfy both These expenses do not include any claims:
compensation to the assignee. Pro. Held, That the proceeding had vision may be made for securing such been made one to effect the proper compensation to him.
id. distribution of the proceeds of a ves- sel, already condemned and sold at 13. Where one member of a firm alone the suit of the libellant, and it was, filed his petition in bankruptcy, in- therefore, subject to the considera- dividually and as a member of the tions which control Courts of Admi. firm, and the register adjudged him a ralty in the distribution of money in bankrupt individually and as a mem- the registry. The Bark Acme, 386 ber of the firm, and also adjudged the
firm a bankrupt : See CHARTER Party, 3.
Held, That this latter action of the Costs, 4.
register was erroneous. In such a LIEN, 1, 8.
case, notice of the filing of the peti- 2. IN BANKRUPTCY.
tion must be given to those members
of the firm who have not joined in it, 8. Before a creditor can, under the or assented to it, as if the proceed-
twenty-sixth section of that Act, ap- ings were involuntary against the ply for an order to examine the bank. firmLewis's Case,
96 rupt, he must prove his claim ; but, under the twenty-second section, a 14. Where, afterward, the other member creditor who has tendered proof of a of the firm presented a petition praying debt, which has not been allowed, that both of them might be adjudged may also apply for such examination. bankrupts, and that he might have Ray's Case,
53 leave to join in the first petition :
Held, That this petition might be 9. No order of court is necessary to taken as expressing the assent of the
authorize the assignee to sell unen- petitioner to the petition of the other cumbered assets of the bankrupt. partner, and to validate the adjudica, White & May's Case,
85 tion of bankruptcy against the firm;'
That it was not necessary for him 10. If a creditor opposes a bankrupt's to otherwise join in the first petition.
discharge, the register must make a The proceedings as to his individual certificate of his proceedings, and re- creditors would be had under his pe- tition, and the proceedings as to the of the act, several months having individual creditors of the other elapsed since the proofs of the cred- partner, and as to the creditors of itors' debts, and no reason for requir- the firm, would take place under the ing a new examination being shown: first petition.
id. Held, That the application must be
denied. Isidor & Blumenthal's Case, 15. Applications by assignees in bank-
123 ruptcy to settle controversies under the seventeenth section of the Bank- 20. Where a witness, called for examin- ruptcy Act, or to sell property under ation under the twenty-sixth section the twenty-fifth section, must be made of the Bankruptcy Act, objected to to the court, and not to a register. being examined, on the ground that Graves' Case,
100 there was no authority to examine a
witness under the Act unless there 16. It is incumbent upon registers in no was a question in controversy to be
manner to interfere with or influence. settled by testimony, and not until directly or indirectly, the choice of after the examination of the bankrupt an assignee by creditors. Smitli's himself, but, without insisting on the Case,
113 objection, submitted to an examina-
tion, and the register certified the The policy of the Bankruptcy Act is to question, involved in his objection, to
give to the creditors, in the first in- the court: stance, a free, deliberate, unbiased, Held, That the objection was frivo- choice of the assignee.
id, lous;
That, after the witness had waived 17. Where creditors applied to have bis objection, there was no question to
the proceedings sent before another question to be certified, and the regis- register than the one to whom the ter should have refused to give a cer- case had been referred, on the ground tificate. Fredenberg's Case, 133 that the register had interfered in choice of an assignee, the court 21. Where specifications of objection to granted the application, without, how- a bankrupt's discharge state that he ever, questioning the motives of the
has placed his property in the hands, register in what he had done, but be- of his wife, and withbeld his books, cause the creditors, who had made
papers, and documents, they will be affidavits in support of the applica- held too general, unless they are in. cation, and their attorney, ought not tended to apply to all his property to be compelled by the court, after and all his books, papers, and docu- all that had transpired, to continue ments. the proceedings before the register in A general charge of fraud against question.
the Act is too vague. Hill's Case,
136 18. Where creditors, who had proved
their debts, served on the register a no- After specifications of objection are tice protesting against the proof of any filed, further proof may be taken, if claims against the estate by certain desired, by a reference to the register. other creditors, and requesting to be notified if any such claims were tendered for proof:
The issues to be tried in such case are Held, That they had the right to the allegations in the specifications; serve such a notice.
id. and, where the bankrupt has taken
the oath required by section twenty- 19. Where the bankrupts were examined nine of the Act, the burden of proof
by the assignees, and creditors filed is on the creditor to show that the specifications of opposition, wbich the bankrupt has forfeited his title to a court held irregular in form, and al- discharge.
id. lowed them time to file new ones, and in the interim they applied for an 22. Specifications of objections to a dis- order that the bankrupts attend and be examined under section twenty-six
charge must not be vague and general. If they are such, they furnish no
id.
ground for refusing a discharge. Held, That the register should have Son's Case,
153 granted his petition. The bankrupt
had prayed to be discharged from all 23. The pendency of an examination of his debts, and could not be discharged
the bankrupt is good cause for an ad- from the debts of the firm until the journment of the proceedings, on the partner was brought in. Little's Case, order to show cause why the bankrupt
186 should not be discharged. Thompson's Case,
166 28. A creditor, who has a security for
his debt, may prove his claim for the 24. Creditors who desire to oppose a overplus, without abandoning the
bankrupt's discharge must prove their security, but must set forth the value claims. Levy's Case,
169 of the security, and may vote, on the
choice of an assignee, upon such over- 25. Where a bankrupt was arrested in
plus. Bolton's Case,
189 an action in a State court on allega- tions of fraud in contracting the debt, 29. Where a corporation was organized to recover which the action was
under the laws of the State of New brought, and gave bail, and applied
York, and, in a proceeding instituted to this court, on affidavits denying the by the Attorney-General of the State, allegations of fraud, for an order dis- and restraining the company and its charging him from arrest, and dis-
officers from exercising any of its cor- charging the bail:
porate powers, was declared insolvent, Held, That the court was competent
and an order dissolving it and appoint- to give him the relief sought, provided
ing a receiver was made by the Su- his arrest was founded on a debt from preme Court of the State, and the re- which his discharge in bankruptcy
ceiver took possession of the property would release him.
of the company, and thereupon a peti- That the court must inquire into
tion in involuntary bankruptcy was that question of fact, and decide it on
filed: this application. Glaser's Case, 180
Held, That the service of the order
to show cause must be made by publi 26. A Bankruptcy Court; in determin- cation;
ing the question whether the arrest of That the company had suffered its a bankrupt is founded on a debt or property to be taken on legal process, claim from which his discharge would
with intent to defeat the operation of not release him, as provided by the the Bankruptcy Act. The Washington twenty-sixth section of the Bank- Marine Ins. Co.'s Case,
292 ruptcy Act, can look only at the papers which were before the State Court, as 30. Where specifications of objection to the foundation of the arrest. Kimball's a bankrupt's discharge had been filed, Case,
554
and the creditors then moved for leave
such a state of facts, if proved, would they thereafter resided there upon amount to a fraud under the twenty- some property belonging to his wife, ninth section of the Act;
while he engaged as a clerk with his That leave to take evidence would successors in business, and continued be granted. Moort's Case, 325 so till the filing of his petition in bank-
ruptcy, two years after: 31. Where specifications of objection to Held, That his petition was prop.
a bankrupt's discharge had been filed, erly filed in the Southern District of which were too vague to be triable, New York. Belcher's Case, 468 and no application was made to amend them, and a discharge was granted, 35. Where creditors were required to and the creditor, about a month after- show cause on a certain day, why a ward, applied, on petition, to have the bankrupt should not be discharged, discharge set aside, and for leave to and on that day creditors appeared, file amended specifications:
and the proceedings on the order were Held, That the creditor was charge- adjourned till a subsequent day: able with laches. McIntire's Case, Held, That the ten days, within
345
which specifications of objections to
the discharge were to be filed, dated 32. Where a bankrupt filed a petition from the adjourned day. Tallman's in bankruptcy in the Southern Dis- Case,
404 trict of New York, not averring any place of residence, and, on his ex- 36. Where creditors opposed the dis. amination, it appeared that he re- charge of a bankrupt, on the ground sided with his father, in New Jersey, that he had procured the assent of cer- and had done so since he came from tain creditors to his discharge by a Chicago, four years previous; that he pecuniary obligation, and the evidence had been engaged in looking after a showed that he had paid to the coun- private matter, with a view to return- sel for those creditors, their fees, for ing to Chicago, and that, for about six services rendered in the matter, months back, he had been keeping amounting to $20, but it also appeared books for a firm in New York city, that those creditors had announced and, thereupon, the register declined that they would not oppose the dis- to make an adjudication of bankruptcy, charge, before any thing whatever as having no jurisdiction of the case; was said about his paying their coun-
Held, That the register's decision sel fees, and that such payment was was correct. Magie's Case, 369 not made a condition of their with.
drawing further opposition : 33. Where a bankrupt did not reside in Held, That the burden of proof was
the Soutlrern District of New York upon the opposing creditors, and the during the next six months preceding proof did not sustain the specification. the filing of his petition, but, before Mawson's Case,
412 his insolvency, had been in business in New York city, and had, during 37. Where a creditor, who resided out of the whole of the said six months, car- the district, had proved his debt in the ried on business in New York city as proceedings, and an order was made the agent and attorney of his brother, that he appear before the register and in buying and selling merchandise, be examined touching his debt: keeping an office for that purpose with Held, That, in case of his disobedi. his brother's name upon the sign: ence, the court could strike out his
Held, That the petition in bank- claim; ruptcy was properly filed in the South- That, if he could not personally at- ern District of New York. Baily's tend, to be examined in the district, Case,
437
without hardship, the court would
![[ocr errors]](https://books.google.co.za/books/content?id=hfE7AAAAIAAJ&output=html_text&pg=PA594&img=1&zoom=3&hl=en&q=%22to+provide+a+national+currency,+secured+by+a+pledge+of+United+States%22&cds=1&sig=ACfU3U3n-qNbzhpBbvRWQtrDXJYJz6_8Wg&edge=0&edge=stretch&ci=268,1015,12,13)
a levy made under it, and thereupon, bankruptcy alleged that the bankrupt on the filing of a petition in bank- had concealed himself to avoid the ruptcy by the judgment debtor, an in- service of legal process, &c., as pro- junction was issued restraining pro- vided in the thirty-ninth section of the ceedings on the execution, and there- Bankruptcy Act, and the debtor de- after a motion was made to dissolve manded a trial by jury: the injunction, on which the bankrupt Held, That, on such trial, notwith- produced affidavits to show that he standing the provisions of the forty- had no interest whatever in the prop-
first section of the Bankruptcy Act, erty levied on:
the creditor was called upon to prove Held, That, as the assignee, though the facts alleged in his petition. Hop- notified of the proceedings, had taken pock's Case,
478 no steps to acquire possession of the property, and as it did not appear 42. An order for the examination of the that the proceedings of the creditor debtor in proceedingssupplemental under the execution would affect any to execution, under $ 292 of the New one who was entitled to the protection York Code, is "legal process," within of the court under the Bankruptcy the meaning of the thirty-ninth sec- Act, the injunction would be dissolved. tion of the Bankruptcy Act. id, Olcott's Case,
443
43. Where, in bankruptcy proceedings, 39. Where an order was obtained for a creditor, claiming to hold collaterals
the examination of a bankrupt and his as security for an indebtedness of the wife, proceedings on which order were bankrupts, applied for an order to sell adjourned several times, during which the same, under the twentieth section time the bankrupt filed a petition for of the Bankruptcy Act, which was op- discharge, and obtained an order to posed by the assignee in bankruptcy, show cause, but nothing was done on on the ground that the creditor had the return day of that order, but ob. not proved his debt, as required by jections were afterward filed, and the twenty-second section of the Act: thereupon, on the day to which the Held, That the creditor could sub- examination had been adjourned, the stantiate his claim against the bank- bankrupt objected to being examined rupts, so far as to comply with the re- on the ground that he had applied for quirements of the twenty-second sec- his discharge, and the time to file ob- tion, without previously ascertaining jections to the discharge had expired: the value of the securities which he
Held, That the adjournment, with- out day, of the proceedings under the That, as the creditor's right to hold petition for discharge, terminated the collaterals was dependent upon those proceedings, unless a new order his ability to show himself to be a was issued;
creditor, no permission to sell the col- That the objections to the discharge laterals could be granted until his might stand as properly filed;
right to sell them was shown, as re- That the time to examine witnesses quired by the twenty-second section of had not expired;
the Act. Bigelow's Case,
480 That the time to file objections should be kept open by adjournments 44. Where, previous to the passage of of any order to show cause, until a full the Bankruptcy Act, an attachment opportunity for the examination of the bad been issued out of the Supreme bankrupt and his wife, and other wit- Court of the State of New York against nesses, had been given. Seckendorf's the property of H., who made a mo- Case.
« PreviousContinue » |