22 Ga. App. 684 | Ga. Ct. App. | 1918
The appointment of a^ receiver by a bankruptcy court does not oust the bankrupt of title to his property seized by the receiver; and where property is sold under a contract by which title is retained in the vendor until payment of the pux-chase-money, the vendor’s title is not lost by seizure of the property by a receiver in bankruptcy of the vendee.
(a) A composition by the bankrupt with creditors as provided by the bankruptcy act, made before he is adjudicated a bankx-upt, and before the election of a trustee, does not have the effect of ousting the title retained under such a contract, unless the holder of the title so retained becomes a party to the composition and accepts its terms.
(b) Refusal of the petition in bankruptcy upon such a composition has the effect of discharging the receiver and placing possession of the property back into the alleged bankrupt.
(c) When the property is so redelivered, the holder of such title, upon ■proofs that he has not become a party to the composition, has the same legal rights open to him as if there had been no bankruptcy proceeding.
(d) The paper introduced by the plaintiff was, as between the parties, an effective retention of title of the property sued for. It was not error to grant the motion for a new trial.
Judgment affirmed.
As to reservation of title: Park’s Ann. Code, § 3318; Merchants &c. Bank v. Cottrell, 96 Ga. 168 (2); General Fire Extinguisher Co. v. Lamar, 141 Fed. 353 (2); Wheeler & Wilson Mfg. Co. v. Irish-American Dime Savings Bank, 105 Ga. 57. As to effect of composition: Amendment of 1910 to bankruptcy act; 3 Remington on Bankruptcy (2d ed.), §§ 2346-50, 2354-1/4; Glover Grocery Co. v. Dorne, 116 Ga. 216; Graham v. Richerson, 115 Ga. 1002.
1 Rem. Bkr. (2d ed.), § 1120, p. 909; 3 Ruling Case Law, 193; In re Winship Co., 120 Fed. 93 (56 C. C. A. 45); Rand v. Iowa Central Ry. Co., 16 Am. Bkr. R. 696-7 (186 N. Y. 58); In re Laplume Condensed Milk