In re Jessup
In re Jessup
Opinion of the Court
The only objection which is available to the opposing creditors is that in relation to the sale by the bankrupt of a piano belonging to him at the time of his petition in bankruptcy, and included in the schedules filed by him. The exact date of the sale is not in proof; but as the bankrupt has failed to show that the sale of it was prior to his petition, and as it is included in the schedules filed by him, it must be assumed to have been made after the filing of bis petition and schedules in 1877. Section 5110, subd. 2, provides that “a discharge shall not be granted if the bankrupt has been guilty of any fraud or negligence * * in the delivery to the assignee of the property belonging to him at the time of the presentation of his petition and inventory, except such as ho is permitted to iretain under the provisions of this title, or if he has caused, permitted, or suffered any loss, waste, or destruction thereof.” The piano was not an article which the law authorized the' bankrupt to retain. He sold it to the Ghickerings, according to his own testimony, for about “$240 or $250—,might have been $200.” He says he applied the proceeds to pay for “legal proceedings in this bankruptcy proceeding;” that he paid it to his attorneys. “Question. All that you got for the piano ? Answer. I don’t recollect, as I paid by installments,—sometimes one amount, sometimes another, as the case demanded.” The evidence of one of his attorneys shows various payments to the register, clerk, and marshal during the pend-ency of the bankruptcy proceedings, amounting altogether to about $150.
The sale of the piano by the bankrupt after the filing of his petition was a plain violation of subdivision 2 of section 5110. It makes no difference whether the sale was before the appointment of the assignee or after. Before the appointment of an assignee the bankrupt was himself a trustee in respect of his property for the benefit of his creditors; he was bound to preserve it for delivery to the assignee when appointed. March v. Heaton, 1 Low. 278; In re Steadman, 8 N. B. R. 319. The resolution for a composition not having been presented to the court for approval for a long period, the delay of the bankrupt in this respect, as well as his acts in the mean time, were entirely at Ms own risk. When, in 1883, after slumbering nearly six years, the composition proceedings were revived, presented to the court, disapproved, and set aside, and an assignee appointed, this revival of the old proceedings could not he available for the bankrupt’s discharge, except on the condition that his acts in the mean time had not violated any of the provisions of section 5110.
The discharge cannot, therefore, be granted.
Reference
- Full Case Name
- In re Jessup, Bankrupt
- Status
- Published