Page:Federal Reporter, 1st Series, Volume 1.djvu/413

IN THB MATTHB OV HBNET TBOTH. 405 �In THE Mattbb of Henry Troth, Bankrupt. �{Circuit Court, D. New Jersey. January 31, 1880.) �ASSIONMENT FOR BeNEFIT OF CkEDITORS — "CoNTBrANCB UX VIOLATION �OF THE Provisions op the Bankrupt Act" — Rev. St. i 5129. — A voJuntary assignment for the beneflt of creditors, under a law of the state of New Jersey, which "imposes restraints upon the rights to partici- pate in the distribution of the assigned estate," inconsistent with the bankrupt act, and changing " the course of their administration" under the act, is a " conveyance in violation of the provisions of the bankrupt act," within the scope of section 6129 of the Revised Statutes. Samb — Deets Provbd Undbr Assignment — Composition Resolution. —Creditors who have proved their debts under such assignment are still competent to vote upon a composition resolution at any time within six montlis after such assignment was made. �Bill of Eeview. �McKennan, J. This bill prays for a reversai of the order of the district court approving a resolution of composition adopted by the creditors of Henry Troth, and ordering it to be recorded. �It appears that on the thirtieth of August, 1878, Henry Troth filed bis petition in bankruptcy, and that on the twenty- first of October foUowing, at a meeting of bis alleged cred- itors, a resolution of composition was adopted by the required number of creditors, representing the required amount of claims against the bankrupt. �On the tenth of April, 1878, the bankrupt made a volun- tary assignment of all bis property for the benefit of bis creditors, under which all the creditors, who approved of the composition, proved their debts, and made claim to their dividend of the assigned, assets. The complainant, on this proceeding, refused to prove under the assignment or to assent to the composition. �Henoe it is urged that the resolution of composition was not lawfully adopted, and ought not to bave been approved by the district court. �By the statute of New Jersey relating to voluntary as- signments, the assignee is invested with a complete title to ftU the property of the assigner at the date of the assignment, ��� �