223 F. 771 | 2d Cir. | 1915
On February 11, 1914, A. Bolognesi & Co. made a general assignment for the benefit of creditors. Subsequently' and on or about the 12th day of March, 1914, a petition in bankruptcy was filed against A. Bolognesi & Co. by Paoli Bros, and others, alleging themselves fio be creditors. To this petition an answer was interposed, asserting that the petitioning parties were not qualified creditors, in that they claimed priority rights to trust funds and were .estopped by reason of their assent to and participation in the assignment proceedings. Various other creditors, subsequently and before the expiration of four’ months from the date of the insolvency, filed petitions and asked to be allowed to intervene, which requests were granted. On June 22, 1914, Valori and others, also creditors, filed petitions, and on the same day were allowed to intervene. This was more than four months after the date of the assignment, but the original petition of Paoli and his fellow creditors was still pending.
The alleged bankrupts answered this last petition, setting up the same defense which was interposed to the Paoli petition, and also averring that no act of bankruptcy had been committed within four months next preceding the date of the Valori petition. Valori and those joining with him are qualified creditors in number and amount. On June 22, 1914, Judge Learned Eland referred the matter to a special master. From time to time, some before and some after that date, the creditors, other than Valori and his associates, withdrew from the case. When the special master’s report came before Judge Hough, he dismissed the petition in bankruptcy on the ground that:
“Tbe application of all tbe qualified creditors to withdraw having been granted, the petition cannot be sustained on. the intervention of qualified creditors after the four months period.”
The order is reversed.