Brown & Welsman v. Rebb
Brown & Welsman v. Rebb
Opinion of the Court
Curia, per
The Bankrupt Act requires the petitioner to set forth in his petition, to the best of his knowledge and belief, a list of his creditors, with their residences and the amounts due to them respectively. Notice is to be published in one or more of the public newspapers, twenty days before the hearing of the petition, to all persons interested, to appear at the time and place of hearing, to shew cause why the prayer of the petitioner should not be granted. Before a discharge and certificate
Admitting that any of the causes mentioned in the Act, which are sufficient to prevent the allowance of his discharge and certificate to a bankrupt, may be sufficient to impeach the certificate after it is allowed, as not having been “ duly granted,” the question presented by the appeal is, whether the omission to give notice to a creditor, though the omission be neither fraudulent or intentional, is sufficient to invalidate the certificate as against such creditor.
The question made by the appeal should have been confined to the effect of the omission to give personal notice to a creditor whose residence is known, because the grant of the certificate authorizes the assumption that the notice by publication in the newspapers required by the Act, was given. It cannot be questioned that such notice may be sufficient to bring and make all proper parties to a judicial proceeding. It is familiarly known in the practice of our courts, in cases of discharges of insolvent debtors, suits in attachment, partitions, aud creditors’ bills in equity.
Personal notice cannot be indispensably necessary to
But even if personal notice, by letter addressed to the appellants, was necessary, the omission of the defendant to give it must appear to have been- fraudulent, in order to impeach his certificate. The Act is express, that the omission to comply with any orders or directions of the court, or to conform to any of the requisitions of the Act, must be “ wilful.” In Owen on Bankruptcy, 224, it is said that the omission “must be wilful, and arise from improper motives and in that part of the Act which declares what shall be the effect of the certificate, it is provided that it shalljae conclusive evidence, unless impeached for some fraud.
The defendant, in an affidavit accompanying his application for discharge, affirms that he did not know the appellants had recovered a judgment against him, and that the ‘omission to insert it in his sehedule of debts, proceeded from that ignorance, and was casual. The discharge was not opposed by any proof, or even averment, that the appellants had not actual notice through the newspapers, or by other means, of the defendant’s application for tha benefit of the bankrupt law, nor did they impeach the certificate on the ground of a wilful or fraudulent omission by the defendant to insert their debt in his schecule, and cause personal notice to be given to them; nor prove any notice to
On the construction of the Act, and the authority of the cases cited in the report, the defendant was entitled to a discharge from arrest under the appellants’s execution, unless they showed some ground of fraud to impeach the certificate. This they wholly neglected to do.
The motion is dismissed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.