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An agent who sells goods for his principal on commission and pays over the balance of sales monthly is released from liability for an unpaid balance by a discharge in bankruptcy, such debt not having been created in a "fiduciary character;" and, if such debtor be arrested under a state statute, he will be released on application to the district court. (Grover & Baker v. Clinton, 8 N. B. R. 312; 6 Chi. Leg. News, 33; 21 Pittsb. Leg. J. 34; Fed. Cas. 5845.) A bankrupt cannot be held in arrest upon a judgment for costs in a proceeding in a state court (In re Borst, 2 N. B. R. 62; 1 Gaz. 18; Fed. Cas. 1665); nor upon a judgment in trespass when he has received his discharge in bankruptcy. (In re Simpson, 2 N. B. R. 17; Fed. Cas. 12879.) And if arrested under a warrant of a state court for fraudulently conveying his property prior to the passage of the Bankrupt Act, he may be discharged, since the title to the property fraudulently conveyed should be regarded as vested in the assignee. (Goodwin v. Sharkey, 3 N. B. R. 138.) But when a court of bankruptcy has no power to discharge a judgment, it cannot interfere to prevent its enforcement by imprisonment, unless necessary to the exercise of its jurisdiction. (In re Pettis, 2 N. B. R. 17; Fed. Cas. 11046.) If the bankrupt be arrested on an attachment issued by a commissioner in chancery of a state court in proceedings to discover a bankrupt's estate to satisfy a lien established prior to bankruptcy, he will be discharged on application to a United States court. (Ex parte Taylor, 16 N. B. R. 40; 1 Hughes, 617; 24 Pittsb. Leg. J. 205; Fed. Cas. 13773.)

A composition satisfies the debt, though based upon a sale procured through false representations, and will render void an arrest upon civil process. (Bamberg et al. v. Stern, 18 N. B. R. 74.) Subsequent to final judgment, a stay of a proceeding for the purpose of putting in motion the remedy of arrest reserved to the creditor is not allowable. (In re Whitney, 18 N. B. R. 563; Fed. Cas. 17581.)

b. The judge may, at any time after the filing of a petition by or against a person, and before the expiration of one month after the qualification of the trustee, upon satisfactory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, and that his departure will defeat the proceedings in bankruptcy, issue a warrant to the marshal, directing him to bring such bankrupt forthwith before the court for examination. If upon hearing the evidence of the parties it shall appear to the court or a judge thereof that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison

him, until he shall be examined and released or give bail conditioned for his appearance for examination, from time to time, not exceeding in all ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto.

[Act of 1867. SEC. 40. If it shall appear that there is probable cause for believing that the debtor is about to leave the district, or to remove or conceal his goods and chattels or his evidence of property, or make any fraudulent conveyance or disposition thereof, the court may issue a warrant to the marshal of the district, commanding him to arrest the alleged [bankrupt] and him safely keep, unless he shall give bail to the satisfaction of the court for his appearance from time to time, as required by the court, until the decision of the court upon the petition or the further order of the court, and forthwith to take possession provisionally of all the property and effects of the debtor, and safely keep the same until the further order of the court.]

Arrest of bankrupt to secure his attendance.-Under the act of 1867 it has been held that the arrest of the debtor under a provisional warrant to secure his attendance at the hearing and adjudication is authorized, but no arrest can be made under the warrant after adjudication. A bond given by the debtor to secure his release from an arrest made after adjudication is therefore void. (Usher v. Pease et al., 12 N. B. R. 305.) In an application for a provisional warrant and order of arrest there should be filed a separate petition, supported by affidavits of persons having knowledge of the facts, when the same are not stated in the petition of the politioner's own knowledge. (In re McKibben, 12 N. B. R. 97; Fed. Cas. 8559.) A provisional warrant may issue in the case of a debtor adjudicated bankrupt on a voluntary petition and who remains in control of his property and disposes of some of it, if he expresses an intention of going abroad to adjust his foreign accounts. (In re Hale, 18 N. B. R. 335; Fed. Cas. 5911.)

Sec. 10. Extradition of bankrupts.-a. Whenever a warrant for the apprehension of a bankrupt shall have been issued, and he shall have been found within the jurisdiction. of a court other than the one issuing the warrant, he may be extradited in the same manner in which persons under indictment are now extradited from one district within which a district court has jurisdiction to another.

When a bankrupt has once been extradited, he may be detained (sec. 9), and obedience to all lawful orders enforced by fine or imprisonment, or both (sec. 2—13).

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Sec. 11. Suits by and against bankrupts.-a. A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the time of the filing of a petition against him, shall be stayed until after an adjudication or the dismissal of the petition; if such person is adjudged a bankrupt, such action may be further stayed until twelve months after the date of such adjudication, or, if within that time such person applies for a discharge, then until the question of such discharge is determined.

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[Act of 1867. SEC. 21. That no creditor proving his debt or claim shall be allowed to maintain any suit at law or in equity therefor against the bankrupt, but shall be deemed to have waived all right of action and suit against the bankrupt, and all proceedings already commenced or unsatisfied judgments already obtained thereon, shall be deemed to be discharged and surrendered thereby; and no creditor whose debt is provable under this act shall be allowed to prosecute to final judgment any suit at law or in equity therefor against the bankrupt, until the question of the debtor's discharge shall have been determined; and any such suit or proceedings shall, upon the application of the bankrupt, be stayed to await the determination of the court in bankruptcy on the question of the discharge, provided there be no unreasonable delay on the part of the bankrupt in endeavoring to obtain his discharge, and provided, also, that if the amount due the creditor is in dispute, the suit, by leave of the court in bankruptcy, may proceed to judgment for the purpose of ascertaining the amount due, which amount may be proved in bankruptcy, but execution shall be stayed as aforesaid.]

This section makes a distinction between suits upon claims from which a discharge would be a release and those in which it would not. The logic of this provision is plain. To prosecute to judgment a suit pending against a person at the time the petition is filed is useless, if it is based upon a claim from which a discharge would be a release, as under any circumstances each creditor would share equally with the others in the distribution of the estate and his rights would be fully preserved

by proving his claim against the estate. If, however, the bankrupt is not discharged, the suit may then be prosecuted to judgment. The stay must be until after an "adjudication," which means the day of the entry of a decree that the defendant in a bankruptcy proceeding is a bank. rupt, or, if such decree is appealed from, then the date when such decree is finally confirmed. (Sec. 1—2.)

Non-liquidated claims against the estate may, pursuant to application to the court, be liquidated in such manner as it shall direct, and may thereafter be allowed and proved against the estate. (Sec. 63b.)

Stay of suits-Jurisdiction of courts.- Application for injunction to stay proceedings must be heard and decided by the court of bankruptcy. (Orders XII) The United States district court is a court of equity having cognizance of all cases in controversy between the bankrupt and his creditors, and has the same power to restrain creditors in judgments at law against a bankrupt that a state court of equity would have over such creditors if the debtors were not bankrupts. (Fowler, Ass., v. Dillon et al., 12 N. B. R. 308; 1 Hughes, 232; Fed. Cas. 5000.) It has full jurisdiction to suspend or control suits brought in state courts against a bankrupt. (In re Davis, 8 N. B. R. 167; Fed. Cas. 3619.) But it has no authority to withdraw from the state court suits pending therein between the bankrupt and other parties and compel their trial in the district court. (Samson v. Burton, 4 N. B. R. 1; 5 Ben. 313; Fed. Cas. 12285.) It may restrain the sheriff of the state court from levying on the property of the bankrupt to satisfy a judgment of the latter court, although the judgment was obtained prior to the adjudication of bankruptcy. (In re Mallory, 6 N. B. R. 22; 1 Sawy. 88; Fed. Cas. 8991.)

The bankruptcy court has no jurisdiction over a state court, but it has full and complete original jurisdiction of the bankrupt and all its assets and creditors, and may fine and imprison any of said creditors for interfering with the assets in the state court without permission of the district court, on any debt which might be proven against the estate of the bankrupt. (In re Winn, 1 N. B. R. 131; 1 Amer. L. T. Rep. Bankr. 17; Fed. Cas. 17876; Markson et al. v. Heaney, 4 N. B. R. 165; 3 Chi. Leg. News, 153; Fed. Cas. 9098; Irving v. Hughes, 2 N. B. R. 20; 7 Amer. Law Reg. (N. S.) 209; 6 Phila. 451; 24 Leg. Int. 380; 15 Pittsb. Leg. J. 121; Fed. Cas. 7076; In re Whipple, 13 N. B. R. 373; 6 Biss. 516; 8 Chi. Leg. News, 131; Fed. Cas. 17512.) It is within the power of the bankruptcy court to permit a sale under execution where an injunction has been granted restraining such sale, and the judgment creditors are bound by the bankrupt court's order and cannot recover the proceeds of the sale from the sheriff. (O'Brien v. Weld et al., 15 N. B. R. 405; Samson v. Burton, 6 N. B. R. 403; Markson et al. v. Heaney, 4 N. B. R. 165; 1 Dill 497; Fed. Cas. 9098.)

When the right of a state court is subject to be impeached, it can only be done by the intervention of the assignee. (Valliant, Ass., v. Childress, 11 N. B. R. 317.) An attempt of a state court to collect and distribute

the assets of an insolvent corporation is in contravention of the bankruptcy law, although the law under which the state court proceeds does not provide for or purport to discharge the debtor from its liabilities. (In re Merchants' Insurance Co., 6 N. B. R. 43; 3 Biss. 162; 20 Pittsb. Leg. J. 32; 4 Chi. Leg. News 73; Fed. Cas. 9441.) The jurisdiction of a state court does not extend to the administration of the assets of an insolvent bankrupt, but the property of the corporation should be surrendered into the court of bankruptcy to be there administered upon (Thornhill et al. v. Bank of Louisiana, 3 N. B. R. 110; 3 Amer. Law T. 38; 2 Chi. Leg. News, 157; 1 Amer. Law T. Rep. Bankr. 156; Fed. Cas. 13990; In re Independent Ins. Co., 6 N. B. R. 260; Holmes, 103; Fed. Cas. 7017; In re Merchants' Ins. Co., 6 N. B. R. 43; 3 Biss. 162; 4 Chi. Leg. News, 73; 20 Pittsb. Leg. J. 32; Fed. Cas. 9441); but a district court has no jurisdiction to order summarily the delivery to an assignee of goods of a lessee seized by the sheriff under a writ of provisional seizure, obtained by the lessor prior to proceedings in bankruptcy. (Marshall v. Knox et al., 8 N. B. R. 97; 16 Wall. 551.) The proceeds of sale of mortgaged property in the possession of a state court, not brought there by final process to enforce the mortgage lien, must be paid over to the assignee in bankruptcty of the mortgagor, and the mortgagee must go into the bankrupt court and assert his lien there. (Morris v. Davidson, 11 N. B. R. 454.)

After it is shown that the defendant has been declared a bankrupt, a court is bound to take judicial notice that all his property and effects were vested by operation of law in the assignee. (Morris v. Davidson, 11 N. B. R. 454.)

What suits stayed.-When a debtor is adjudged a bankrupt, all proceedings against him in the state court must be stopped if the subjectmatter of the suit can be proven against his estate in bankruptcy; and any creditor who holds a claim against the estate of the bankrupt which might be proven in bankruptcy, whether the debt is secured by lien or not, can only enforce such debt in the state court upon permission of the district court. (In re Winn, 1 N. B. R. 131; 1 Amer. Law T. Rep. Bankr. 17; Fed. Cas. 17876; In re Van Buren, 19 N. B. R. 149; Fed. Cas. 16833; In re Belden, 6 N. B. R. 443; 5 Ben. 476; Fed. Cas. 1239; R. S. McGehee et al. v. Hentz et al., 19 N. B. R. 136; Fed. Cas. 8794; Penny v. Taylor, 10 N. B. R. 200; Fed. Cas. 10957.) So if the bankrupt appears and moves for a stay of proceedings in the suit in a state court for the foreclosure of a mortgage, the portion of the suit asking for personal judgment should be stayed. (McKay v. Funk, 13 N. B. R. 334; Markson et al. v. Heaney, 12 N. B. R. 484; In re Snedaker, 3 N. B. R. 155; In re Migell, 2 N. B. R. 153; Fed. Cas. 9538.) Also an action on a claim originating in a contract fraudulently induced, sounding in damages, is within the provisions of the bankrupt law prohibiting any creditor from prosecuting to judg ment a suit on a provable debt before the debtor's final discharge has been settled. (In re Schwarz, 15 N. B. R. 330; 14 Blatchf. 196; 52 How.

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