May v. Henderson
268 U.S. 111 (1925)

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U.S. Supreme Court

May v. Henderson, 268 U.S. 111 (1925)

May v. Henderson

No. 126

Argued March 5, 1925

Decided April 13, 1925

268 U.S. 111

Syllabus

Within four months prior to the filing of the petition in bankruptcy against it, the bankrupt made a general assignment for the benefit of creditors to two trustees, one of whom, H., was the president of a bank to which the assignor was then indebted on a promissory note, and with which it carried a deposit account. The account was transferred, after the assignment, to the names of the trustees, as such, and afterwards augmented by deposits of money collected by them in carrying on the assignor's business. Partly before the date of the bankruptcy petition and partly thereafter, H., having control of the account, caused it to be applied to the note, with the tacit consent of the other assignee. The bank, as well as the assignees, had executed the creditors' agreement under which the assignment was made, providing for a pro rata distribution among all creditors and expressly extending the time of payment of all indebtedness of the assignor for the period of one year. Held, that the assignees were properly directed by the Bankruptcy Court, in a summary proceeding, to pay over to the trustee in bankruptcy an amount equal to the deposits, including the part paid the bank before the filing of the petition as well as the part paid thereafter. P. 268 U. S. 115.

289 F. 192 reversed.

Certiorari to a judgment of the circuit court of appeals, on petition to revise, reversing a judgment entered

Page 268 U. S. 112

by the district court summarily in a bankruptcy proceeding which required the present respondents to pay over a sum of money to the trustee in bankruptcy.

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