Nashville Saddlery Co. v. Green

Citations

• 127 Miss. 98
• 89 So. 816

Syllabus

<p>1. Bankruptcy. Bills and notes. Partnership. Partners individually liable for firm debts; partners indorsing partnership note individually are principals, and released by bankruptcy discharge.</p> <p>Partners are liable individually for debts of the partnership; and, where the partners indorse individually a note given by the partnership, they are not sureties, but principals, and are released from all liability thereon by a bankrupt discharge as partners; such a note is considered an unsecured debt.</p> <p>2. Bankruptcy. Creditor, failing to object to discharge, cannot complain of its irregularity in state court.</p> <p>Where a creditor is present in the bankrupt court, and fails to object to the discharge of the partners because they failed to file a schedule of their individual property, but consents to a con-position and accepts the amount due thereunder after a confirmation by the court, he cannot afterwards, in a suit in a state court, complain of the irregularity of the discharge by the bankruptcy court, especially so where the order fully discharges the debt as to all of the partners as well as the partnership.</p> <p>3. Bankruptcy. Where composition discharge released partners, it is immaterial whether partnership was treated as entity.</p> <p>In such case it is immaterial whether or not the bankruptcy court treated the partnership as an “entity,” because the partnership and partners, composing the partnership are released by the composition discharge, and no further liability whatever exists against the members of the partnership.</p>