116 F. 530 | D. Ind. | 1902
A petition was filed by Thomas C. Beals, a bankrupt, to procure an order from the court enjoining and restraining the Pennsylvania Company from paying into the court of Jarvis Blume, a justice of the peace of Cook county, 111., the sum of $45.06 on a garnishee judgment, and also requiring said company to pay into the bankruptcy court the sum of $65.20, owing by the said company to the bankrupt for wages. The referee to whom this matter was referred heard the same, and granted an injunction as prayed, and ordered the Pennsylvania Company to pay into the bankruptcy court the sum of $65.20, being the amount of wages owing by it to the bankrupt. The order so made by the referee is brought here by the Pennsylvania Company for review. The Pennsylvania Company has set out in its answer the reasons why said order ought not to have been made, and it insists that the referee erred in holding that the facts set out in the answer were insufficient to bar the bankrupt’s prayer for an injunction and other relief. The answer alleges that prior to the filing of his petition to be adjudged a voluntary bankrupt the said Beals was indebted to one William J. Barr in the sum of $56 on an account for groceries; that Barr assigned said account to one William Shaw, a resident of Illinois, for a valuable consideration; that before the commencement of the proceedings in bankruptcy said Shaw instituted an action in attachment. and garnishment according to the laws of Illinois before one Jarvis Blume, a justice of the peace of Cook county, 111., said cause being entitled “William J. Barr, for the Use of William Shaw, against Thomas C. Beals and the respondent the Pennsylvania
There is another reason why, in my opinion, the Pennsylvania Company cannot 'successfully avail itself of the proceedings and judgment in the court of the justice of the peace in Cook county, 111., as a defense to the petition of the bankrupt. The bankrupt was insolvent on and before May 14, 1902, when the judgment invoked by the Pennsylvania Company was rendered. On May 21, 1902, the said Thomas C. Beals was duly adjudged a bankrupt by this court. The bankruptcy act (section 67, cl. “f”) explicitly declares: "That all levies, judg
The Pennsylvania Company has not challenged the jurisdiction of the court to order it to pay the money due the bankrupt into court, except on the ground that the garnishee judgment is valid and binding upon it; and, the court being of opinion that that judgment has been annulled, it follows that the ‘order of the referee should be affirmed. The court expresses no opinion on the question whether a summaryorder could properly have been made requiring the Pennsylvania Company to pay the money into the bankruptcy court if the authority of the court to make such an order had been properly and seasonably presented. No such question was presented by the answer, and therefore, without considering that question, the order of the referee is affirmed. ■