Gamble v. Elkin

Citations

• 205 Pa. 226
• 54 A. 782
• 1903 Pa. LEXIS 551

Syllabus

<p>Bankruptcy — National bankrupt act — Preference—Knowledge of insolvency — Affidavit of defense.</p> <p>Under the national bankruptcy law, a preference is voidable by the trustee in bankruptcy if the person receiving it, or to be benefited thereby, or his agent acting therein, shall have had reasonable cause to believe that it was intended thereby to give a preference. This involves knowledge upon the part of the person receiving the preference, of the insolvency of the bankrupt.</p> <p>In an action by a trustee in bankruptcy against a person alleged to have received a preference from the bankrupt, where the statement alleges that the defendant knew that the bankrupt was insolvent at the date of the alleged preference, an affidavit of defense is sufficient which explicitly denies knowledge upon the part of the defendant, or agents, of the insolvency of the bankrupt, and reasonable cause to believe that the transaction was intended to create a preference.</p>