In re Haupt Bros.

Citations

• 153 F. 239
• 1907 U.S. Dist. LEXIS 279

Syllabus

<p>Bankruptcy — Powers of Court — Property Fraudulently Transferred.</p> <p>Where it clearly appears, in an involuntary proceeding in bankruptcy, before adjudication, from the examination of persons 1o whom the alleged bankrupt has transferred property, that such transfers wore fraudulent, and that the property will be recoverable by the trustee when appointed,, under Bankr. Act July 1, 1898, c. 541. § (>7c, 30 Stat. 504 [U. S. Comp. St. 1901. p. 3449]. as amended by Act Feb. 5, 1903, c. 487, § 36, 32 Stat. 800 [U. S. Comp. St. Supp. 3905, p. 090.1, the court of bankruptcy has power, without the institution of a plenary suit therefor by the creditors, to direct its receiver to take possession of and hold the properly pending suit, when such action is obviously necessary to prevent its loss to the estate.</p>