Blackstone v. Everybody's Store, Inc.

Citations

• 207 F. 752
• 125 C.C.A. 290
• 1913 U.S. App. LEXIS 1657

Syllabus

<p>1. Bankruptcy (§ 74*)—Jurisdiction—Insolvency.</p> <p>In an involuntary bankruptcy proceeding against a corporation, the court will not at the outset investigate and settle the ultimate rights of the parties in respect to titles, to reduce the apparent assets of the alleged bankrupt, in order to show insolvency and bring the estate of the debtor within the bankruptcy law.</p> <p>LEd. Note.—For other eases, see Bankruptcy, Cent. Dig. § 108; Dec. Dig. § 74.*]</p> <p>2. Bankruptcy (§ 60*)—Act of Bankruptcy—Application for Receiver— Insolvency.</p> <p>Where the appointment of a receiver at the instance of the debtor itself is relied on as an act of bankruptcy, the question of adjudication depends solely on the question of solvency or insolvency.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 80; Dec. Dig. § 60.*]</p> <p>3. Bankruptcy (§ 74*)—Acts of Bankruptcy—Insolvenoy-^Feaudulent Transactions.</p> <p>Creditors of an alleged bankrupt, in support of an involuntary bankruptcy petition, were not entitled to claim that a transfer of certain property to the alleged bankrupt, which would not operate fraudulently on the substantive or beneficial rights of such creditors, if it should stand, was nevertheless invalid, and should be disregarded in determining the corporation’s solvency.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 108; Dec. Dig. § 74.*]</p> <p>4. Bankruptcy (§ 467*)—Proceedings—Answer—Extension of Time.</p> <p>It is within the discretion of the court to grant an alleged bankrupt more than the statutory five days in which to answer, and a ruling extending the time will not be reversed, except on grounds of pure error involving injustice.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 929; Dee. Dig. § 467.*]</p> <p>5. Bankrx'ptoy (§ 88*)—Involuntary Petition—Parties—Receivers.</p> <p>Bankr. Act July 1, 1898, c. 541, § 18b, 30 Stat. 551 (U. S. Comp. St. 1901, i). 3429), providing that a bankrupt or any credit