In re Black Diamond Copper Mining Co.

Citations

• 10 Ariz. 42
• 85 P. 653
• 1906 Ariz. LEXIS 93

Syllabus

<p>1. Bankruptcy — Compromise with Petitioning Creditors — Bights op Creditors Subsequently Appearing. — An arrangement made by a debtor and creditors in a petition in involuntary bankruptcy whereby claims of the creditors are compromised, sometimes termed an “informal composition,” is subject to the rights of any creditor who may appear and present his claim.</p> <p>2. Same — Involuntary — Petitioning Creditors — Who May Join— Bankruptcy Act, July 1, 1898, c. 541, Sec. 59 (f), 30 Stats. 562 (U. S. Comp Stats. 1901, P. 3445), Construed. — Section 59 (f), supra, expressly provides that creditors other than the original petitioners may join in the original petition in involuntary bankruptcy.</p> <p>3. Same — Adjudication—Duty op Court — Dismissal — Bankruptcy Act, July 1, 1898, Sec. 18 (b), as Amended, Act Feb. 5, 1903, c. 487, 32 Stats. 798 [U. S. Comp. Stats. Supp. 1905, p. 685], Sec 18 (e), c. 541, 30 Stats 551 [If. S. Comp. Stats. 1901, p. 3429], Sec. 18 (f) Construed. — Under section 18 (b), supra, as amended, providing that the bankrupt may appear to plead to the petition in involuntary bankruptcy within five days after the return day; section 18 (e), supra, providing that if, on the last day within which pleadings may be filed, none are filed, the judge shall on the next day make the adjudication or dismiss the proceeding; and section 18 (f), supra, providing that if the judge be absent on the next day after the last day on which pleadings may be filed, and none have been filed, the clerk shall refer the case to a referee, — where a petition in involuntary bankruptcy set forth acts of bankruptcy, and no pleadings were filed by the bankrupt within the time fixed by law, nor within further time granted by the court, it was the duty of the court to adjudicate the debtor a bankrupt, and a dismissal as against the objection of a creditor seeking to join in the petition is error.</p> <p>4. Same — Dismissal op Proceedings — When not Permissible. — A creditor who has j