102 N.Y.S. 546 | N.Y. App. Term. | 1907
Lead Opinion
When the petition in bankruptcy was filed against the bankrupt, whose trustee is the plaintiff herein, the defendant owed the bankrupt $491.50 on a deposit account. The defendant also held demand notes of the bankrupt to the amount of $8,160 secured by stock at that time worth $10,013.75. About seventeen months later, the defendant sold the stock held as security, pursuant to the terms of the demand notes, for $7,007.50. The present action was brought about seven months after, the petition in bankruptcy was filed for the recovery of the amount of the deposit account. The defendant in its answer pleaded as set-off the debt stated by the demand notes. Section 68b of the Bankruptcy Act provides that a set-off “ shall not be allowed in favor of any debtor of the bankrupt which is not
Gtedersleeve, J., concurs.
Dissenting Opinion
Action by a trustee in bankruptcy to recover $491.50 standing to the credit of the bankrupt in his deposit account with the defendant. The answer admits an indebtedness in said sum as a balance upon said deposit account, subject to the set-off arising out of the mutual debits and credits between said bankrupt and the defendant upon said deposit account and out of loans and advances made hy defendant to said bankrupt, leaving a balance due defendant of $7,668.50. Between April 8, 1902, and February 7, 1903, the defendant loaned to Cone (the bankrupt) $36,000 on collateral. His account with defendant was credited with the proceeds of the loans which
The judgment should be reversed, with costs to appellant to abide the event.
Judgment affirmed, with costs.