49 Miss. 597 | Miss. | 1873
delivered the opinion of the court:
The only question presented in this record is, whether a plea of discharge in bankruptcy, under the act of Congress
• The suit was brought 27th September, 1871; the certificate of discharge set out in the plea, was dated and granted the 20th of May, A. D. 1869. More ihan two years had elapsed from the date of ihe certificate to the date of .the institution of the suit.
The proviso to the- 34th section of the bankrupt law allows “ any creditor whose debt was proved or provable”to contest the validity of the discharge, on the ground that “it was fraudulently obtained” by proceedings instituted (within two years after the date thereof) in the court, which granted it “ to set aside and annul the same.” If the creditor shall establish “the fraudulent acts, or any one of them,” and that “ he had no knowledge of them, until after granting the discharge,” the court “ shall annul and set it aside.” The section specifically points out the order of procedure.
The 29th section contains an enumeration of sundry things, which shall be canse of refusing a “ discharge.” or, if granted, making it “ invalid.” The second is, “ if the bankrupt has concealed any part of his estate or effects. * * ' * ” This is the vitiating matter set up in the replication as invalidating the discharge. Is there jurisdiction in the State court to entertain that question ? It has been finally settled that, although the States may pass insolvent or quasi bankrupt laws, which may operate upon future contracts between the citizens of the State that enacts them; yet, when Congress exerts its jurisdiction, to the extent of its legislation, it is supreme, and would displace conflicting State laws. So long as Congress is silent, the States may exercise their authority. Ogden v. Saunders, 12 Wheat., 273, et seq.; Farmers and Mech. Bank v. Smith, 6 Wheat., 131; Baldwin v. Hale, 1 Wall., 229.
In the act of 1867, and its amendments, Congress has <! established uniform laws on the subject' of bankruptcy throughout the United States.” Its power over the subject
If the theory of law implied in the replication be correct, then the discharge might be impeached in the State court, after the expiration of two years from its date, notwithstanding, the 84th section of the bankrupt law makes it conclusive, unless set aside within that time ; and, notwithstanding, creditors may have availed of the remedy therein given in the district court, and failed to prove the fraud.
The discharge is the judgment of the court, and stands upon the footing of other judgments. Opportunity is afforded to contest it. If not availed of in the mode, and within the time allowed, all remedy to annul it is cut off.
The plaintiff was barred of the privilege to call it in question, at the time he brought his suit in the circuit court. Congress has manifested a clear intention, that after a reasonable time for contesting has expired, creditors shall be shut off, from averring against the discharge any of the matters set forth in the 29th section.
The State court has jurisdiction over all subjects arising out of the question whether the debt in litigation is, or not, embraced in the class, or classes, of liabilities'from which the debtor is not absolved, and upon which his discharge has no effect. If it be replied to the plea of discharge that the particular debt, belongs to a class excepted out of the operation of the discharge, the State court may entertain that inquiry', and adjudicate it. Necessarily that jurisdiction ought to, and does pertain to the tribunal, State or national, where it is raised.
The authorities are not uniform on this subject. The views which we have expressed, are supported in the main by the cases of Ocean National Bank v. Alcott, 46 N. Y., 15, and Corey v. Ripley, 57 Maine, 72.
We are of the opinion that the demun’er to the replication was properly sustained. Judgment is affirmed.