Enet v. His Creditors
Enet v. His Creditors
Opinion of the Court
delivered the opinion of the court. By a decree of this court of the 7th of May last, this cause was sent back to the court of the fourth district, with instructions to the judge, to cause another meeting of the creditors of Joseph Enet, to be held for the purpose of proceeding to the nomination of another syndic or syndics; the first appointment having appeared to this court illegal. This meeting took place, and the present appellants were elected: but the district judge refused to confirm their nomination, on the ground that part of the creditors, viz: those who had mortgages, had been denied right of voting.
The question then whether hypothecary and privileged creditors are to participate in the election of syndics, is the principal, if not the only, subject of investigation here.
The parish judge, acting as notary on this occasion, thought that the creditors of that description were excluded from voting by the 20th article of the 16th chapter of the ordinance of Bilbao, which says, ' that in case there should arise any difficulty in the settlement of accounts and other incidents, and acts, until the close of the proceedings, the minority shall abide by the will of the majority: but that creditors, having privilege by deed or otherwise, above simple creditors, shall not be allowed to vote. This article, however, does not seem to embrace the election of persons, who are to be entrusted with the management of the bankrupt’s estate and settlement of his affairs: provision being made for that nomination in the 12th and 13th articles of the same chapter. Administrators of the estate, under the name of depositaries, are to be chosen by the majority of the creditors, speaking generally without exceptions. The syndics commissioners are to be appointed to ake charge of the books and papers, and to ascertain the number and claims of the creditors, and the active debts of the bankrupt, and to liquidate the whole. Those are distinct trusts, unless it pleases the creditors to place them in the same hands. After these nominations are thus provided for, we find in the 20th arti
Another allegation of the appellants is, that one of the mortgage creditors, who complained that their votes were refused, did not tender his, until the votes had been taken. But there is no evidence that the election was then closed. Besides, it appears that the determination of the notary, not to admit the votes of the hypothecary creditors, had been made known, and that would be sufficient to excuse this creditor, even if he had omitted altogether the useless ceremony of tendering his vote.
The appellants have also made an attempt to shew to this court, that, since the judgment complained of, some of the creditors, in whose favour it was rendered, have thought fit to change sides, and are now willing to acquiesce in the nomination of the appellants as syndics. They even went so far, as to endeavor to establish by calculation, what difference this would make in the result of all the votes. But, this court could not, without assuming original
It is ordered, adjudged and decreed, that the judgment of the district court be affirmed at the appellants’ costs.
Reference
- Full Case Name
- ENET v. HIS CREDITORS
- Status
- Published