In re Franklin Suit & Skirt Co.

Citations

• 197 F. 591
• 1912 U.S. Dist. LEXIS 1461

Syllabus

<p>1. Bankruptcy (§ 115*) — Powers of Court — Recovery of Property Before Adjudication.</p> <p>A court of bankruptcy has jurisdiction, on petition of a receiver appointed for the estate of an alleged bankrupt, before adjudication, to inquire into the status of property alleged in the petition to belong to the bankrupt and to be under his control but to have been placed in the possession of another as ostensible owner for the purpose of defrauding the bankrupt’s creditors; and if, as the result of such inquiry, which may be made by the court directly or through a special master or referee, it should appear that the property is in fact held by the person in possession for the bankrupt, without any real claim of ownership in himself, the court may, by a summary order, require him to turn it over to the receiver.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 165; Dec. Dig. | 115.*]</p> <p>2. Bankruptcy (§ 115*) — -Fraudulent Disposition of Property — Recovery by Receiver.</p> <p>Evidence taken on petition of a receiver considered, and field to show that a transfer of property by an alleged bankrupt to the possession of another was without consideration and solely for the purpose of placing it beyond the reach of his creditors, and that it was held for him and in fact remained in his possession.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Gent. Dig. § 165; Dec. Dig. § 115.*]</p>