Page:United States Statutes at Large Volume 5.djvu/477

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TWENTY-SEVENTH CONGRESS. Sess. I. Ch. 9. 1841. 441 I-uptcy, as follows: All persons whatsoever, residing in any State, Dis- Uniform sys- {gig; or T crritofy of U18 URN8d SUNGS, 0W1I1g debts, which shall not :_°;"‘;’f ::3:;},d haw; been created ID conscqucncc of a dcfalcation as a public officer ; fllgcrsous ’ Oy as executor, 3.d1T111'11Sfl:3t0Y, gU3J'd£i8Il Of trustee, 0I' Whiic acting in owing debts l10f my other fiduciary capaclty, Who Shall, by petition, setting forth to the ;E;§;§gnbY£°‘ ws; nf his knowledge and belief) a list of his or rhcir creditors, their maybe ({6,,;,,2;,1 mspective places of residence, and the amount due to each, rcgcther bnnkrupts. with an accurate inventory of his or thenr property, rights, and credits, 0f every name, kmd, and dcscr1ption, and the location and situation of each and every parcel and portion thereof, verified by oath, or, if conscicntiously scrupuious of taking an oath, by solemn affirmation, apply to the proper court, as hcrcinaftcr mentioned, for the benefit of this act, and therein declare themselves to be unable to meet their debts and engagements, shall be deemed bankrupts within the purview of this act, b§jf§;““§; and may be so declared accordingly by :1 decree of such court; all per- on pcuulm of sons, bcing merchants, or using the trade of merchandise, all retailers their mditvrs. of merchandise, and all bankers, factors, brokers, underwriters, or ma- m;’i3;:g;°;;'°d rine insurers, owing debts to the amount of not less than two thousand cumin cases_

being opposed in opinion upon questions adjourned from the district court, they were certified tqtho Supreme Court on the motion of the counsel of the petitioner. Held, that the district judge cannot sit as a member of the circuit court, under the "Act to establish a uniform system of bankruptcy throughout the United States." Consequently, the points adjourned could not be brcuvht. before the Supreme cnn on a cerzificatc of division. Nelson v. Carland, 17 Pctcrs’ Rep., 181; S. 5., I Howard, 265. An appeal or writ of error will not lic frurrr the decision of the circuit court, in a case of bankruptcy, adjourned from the district court. The decision of the circuit court is conclusive on the district judge. rd. Under the imc bankrupt act of the linited States, the existence of a fiduciary debt, contracted before rhelrpassagc of the acs, constitutes no objection to the discharge of the debtor from other debts. Chapman v. orsyz , 2 Howard, 202. _ I A factor, who receives the money of his principal, is not a. fiduciary, within the meaning of the act. bid. A bankrupt is bound to state, ufson his schedule, the nature of a debt if it ige a fiduciary one. Sbouid he omit 10 do so, he would be gui ty of a fraud, and his discharge will n0t avail him; but rfa creditor, m such case, proves his debt and receives :1 dividend from the estate, he is estoppcd from afterwards saying that his debt was not within tha law. Ibid. Bun if the fiduciary creditor docs not prove his debt, he may recover it afcprwnrds from the discharged bankrupt, by showing that it was within the cxcegtions of the act. I bid. In Kentucky, the creditor obtains alien upon the property of his debtor by the delivcry_0f nji.f¤. to the sheriff ; and this lien is as absolute before the levy as it is afterwards. Savagds Assignee v. Best, 3 Howard, 111. _ _ _ _ _ Therefore, u creditor is not deprived of this hen by an act of bankruptcy on therigart of the debtor omrhiued before the levy is made, but after the execution is in the hands of the she . Ibai. _ _ This court has no revising power ovcr the decrees of the district court sitting in bankruptcy; not is at authorized to issue a writ 0 prohibition to it in any cusc, except where the district is procceding as a court of admiralty and maritime jurisdiction. Ex parte Christy, 3 Howard, 292. _ _ The district ccnrn, when sining in bankruptcy, has jurisdiction over liens and mortgages exmnng unon the property of a bankrupt, so as to inquire into their validity and extent, and grant the same relief which the state courts might. or ought to grant. Ibid. _ _ _ _ The control of the district court over proceedings m the state courts upon such hens, IS exercised, not uvcr uhc state courts themselves, but upon the panics, through an injunction or other appropriate procccding in equity. Ibid. _ _ The design of the bankrupt acm was to secure a prompt and effectual admimgtrauou of the estare ofall nankrupts, worked out by the courts of the United States, without the assistance of state tribunals. bid. The phrase in the 6th section, " any creditor or creditors who shall claim any debt or demand under the bankruptcy," does not mean only such creditors who come in and prove their debts, but pil <>l'8dlt0!S who have a prescm subsiszing claim upon the bankrupfs estate, whether they have a sccumy or mortgugc therefor, or not. Ibid. _ Such creditors have u right to ask that the property mortgaged shall be sold, and the proceed; aisghed Ewards the payment of their debts; and the assignee, on rhs other hand, may contest theircaxms. ·id. _ _ In the casa of a contested claim, the district courj; has jurisdiction, if resort be had to a formal bill 1D equity or other plenary proceeding; and also jurisdiction to proceed summanly. Ibid. _ The principles cszablishcd in ihc case of Ex parte the Cny Bunk of New Orleans in the matter of Christy, ussigncc ufWaIdcr1, reviewed and confirmed. Ibid. _ _ But this court docs not decide whcther or not the jurisdiction of tim district court over all the propcrtly; of 11 bankrupt, mortgaged or otherwise, is exciusive, so as to take nt away from the state courts 1H suc cases. N0non's_ Assignee v. Boyd, 3 Howard, 426. _ Whcrc the deiendam below became a bankrupt, the Sugrcing Court wiii not award a suparsedcas to may an cxecuricn, bccausc the assigncc of the bankrupt as his remedy m the circuit court. Black v- Zacharic, 3 Howard, 48LL Vol., V.--56