18 Ala. 286 | Ala. | 1850
This was an action of assumpsit, brought in the name of the plaintiff in error, as assignee in bankruptcy of Khon, Doran & Co., for the use of Durand & Uzaran. Upon the trial it appeared that the defendant’s intestate, who re^ sided in Alabama, was indebted to Khon, Doran & Co., who were merchants of New Orleans, for goods sold. Khon, Do-ran & Co. were duly declared bankrupts by the District Court of the United States for the District of Louisiana, and the plaintiff was appointed their assignee. The debt had been sold by assignee under the order of the District Court, and was purchased by Durand & Uzaran. Upon this evidence the court instructed the jury that the sale of the debt by the plaintiff, in conformity with the order of the District Court, and the purchase of it by the parties, for whose use this suit is brought, divested the plaintiff of the legal title and he could not recover.
A decree of bankruptcy rendered in conformity with the act of Congress of the 19th August 1841, divests the bankrupt of all right to property, whether in possession or in action, or whether his title thereto be legal or equitable, and his assignee becomes invested by his appointment with the title of the bankrupt to all his effects, and he can maintain any suit in law, or in equity, for the recovery of any property or debt belonging or due to the bankrupt, that the bankrupt himself could have done. It is contended that, as the bankrupt act authorises the assignee to sell