Page:Federal Reporter, 1st Series, Volume 9.djvu/558

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IN BE PITTS. 643 �to take any action jvssailing the alleged Iraudulent transfer by the liankrupt, Md, that his time for so doing, under section 5057, had expired, and that the stay upon the prosecution of the judgment cTeditors' bill heretofore granted should, therefore, be dissolved. �In Bankruptcy. Motion to dissolve inj une tion.

Wm. H. Sloan, for judgment creditors.

�C. Whittaker, foi B,EBignee. �Beown, D. J. The bankrupt filed his volunfcary petition in bank- ruptcy on the twenty-seventh day of July, 1878 ; adjudication of bank- ruptcy was made August 29, 1878, and an assignee appointed. The bankrupt had previously carried on a grocery store at Kingston, and on January 30, 1878, his brother, Henry H. Pitta, recovered a judg-r ment against him, by default, for $6,246.01, upon whieh execution Was immediately issued to the sheriff, and his stock of goods sold out thereunder on February 6, 1878, to Henry, the judgment creditor, jwrho took possession and continued the sfime business. Theyeafter, many of the creditors of the bankrupt, who had sold him more or less of this stock of goods on credit, commcnced suits against him, pro- cured his arrest therein for fraud, and recovered judgments upon their claims. In July, 1878, sotaie weeks previous to the commence- ment of proceedings in bankruptcy, several of these judgment cred- itors had united in filing a bill in equity, on behalf of themselves and all other judgment creditors of the bankrupt, against Henry and Charles Pitts, for the purpose of having the judgment recovered by Henry H. Pitts, and the execution and sale thereuiider, set aside as fraudulent and void. The oomplaint alleged that the said judgment ■was upon a false and fictitious claim ; that the whole proceedings tmder it were for the purpose of cheating and defrauding the bank- rupt's creditors ; and prayed that the goods on hand be applied upon executions on the plaintiiis' judgments, and that Henry H. Pitts be also required to account to the judgment creditors for the proceeds of all goods sold by him, in the business, since he took possession on February 6th. The bankrupt, having filed his petition in bankruptcy on July 27, 1878, on the sixth of August obtained an injunction against the prosecution of the above suit in eqnity, to await the deter- mination of this court on the question of his discharge. �A motion is now made to vacate this injunction and permit the suit in equity to proceed. Two prior motions have been made in this court for the same purpose, — one in November, 1878, and one in April, 1879. Both wero denied; the latter on the ground'that at that time the assignee in bankruptcy was the only person who ��� �