220 F. 956 | E.D. Pa. | 1915
An answer has been filed by certain creditors. The answer is rested upon the general averment upon information and belief that the proceedings are “collusive,” and that the petition has been filed “for the purpose of defrauding creditors of the alleged bankrupts.” These general averments are followed by the more specific ones that for some weeks prior to the filing of the petition the alleged bankrupts had admitted their insolvency and were negotiating with their creditors for a settlement, and when admittedly insolvent, and at the very time the negotiations for a compromise settlement with their creditors were pending they had bought largely of new stock. A further averment is made, on the like basis of information and belief, that the petitioners will withdraw the proceedings when a settlement is effected. To these are added averments that some of the petitioning creditors have set forth the amounts of their claims at sums less than is really due them. The usual prayer for the dismissal of the proceeding follows.
The earnestness and zeal of counsel for the responding creditors does, however, call for a consideration of the cases to which our attention has been directed. As was to be confidently expected, we find nothing in these cases in conflict with the premises above cited. “In point of fact the cases confirm and support the conclusions reached.
Mattoon Bank v. Bank, 102 Fed. 728, 42 C. C. A. 1, is authority for the two propositions that creditors may file an answer and that in a hearing upon petition and answer the averments of the answer must be taken as verity.
In re Moench & Sons Co. (D. C.) 123 Fed. 977, extends the answering right of a creditor to one whose claim will be avoided or affected
In re Duplex Radiator Co. (D. C.) 142 Fed. 906, might safely be relied upon as authority in favor of the adjudication and against the respondent creditors. It also rules two things. One is that an answer asserting the solvency of the alleged bankrupt is no answer at all to a petition which bases the adjudication, not upon the fact of insolvency, but upon the other fact of an admission in writing by the alleged bankrupt of his inability to pay his debts and his willingness to be adjudged a bankrupt. The other is that the fact that the petitioning creditors joined in and filed the petition at the request of the alleged bankrupt does not prevent the adjudication prayed for.
The adjudication is accordingly ordered.