The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 1,006
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250 FEDERAL REPORTER
'In Bankruptcy. In the matter of the bankruptcy of Albert E. Whit-
ney. On -petition for discharge. Petition granted, in event of failure
to file objections.
McCovern & Murphy, of Worcester, Mass., for bankrupt.
MORTON, District Judge. In this case the trustee has reported
that in his opinion the bankrupt ought not to be discharged. The
referee under whose charge the estate was administered also reports
that in his opinion the discharge ought not to be granted. But no
creditor has appeared and filed any specifications of objection, nor
has the trustee done so under Act July 1, 1898, c. 541, 14b (6), 30
Stat. 550 (Comp. St. 1916, 9598).
[1-3] The question is whether the court may, of its own motion,
either refuse a discharge, or direct an investigation upon the ques-
tion whether the bankrupt is entitled to be discharged. The statute
explicitly says "the judge shall hear the application for a discharge
* * * and discharge the applicant," unless certain specified of-
fenses or acts are found to have been committed by the bankrupt. The
grant of a discharge does not lie within the discretion of the court;
the bankrupt is absolutely entitled to it, unless it is proved that he has
committed one or more of the acts which the statute provides shall
bar the discharge. Plainly he is entitled to be informed of the grounds
on which his discharge is objected to, and to be heard upon the issues
presented. In Re Royal (D. C.) 113 Fed. 140, it was said:
"The court will not seek grounds to refuse a discharge, unless they are
properly presented by the parties."
And in Re Thomas (D. C.) 92 Fed. 912, it was said:
"The duty of proving that such ground [ot objection] exists is on the
objecting creditor. * * * But the judge neither seeks to discover grounds
nor supplies lack of specification."
Undoubtedly the referee could direct that a creditors' meeting be
called to consider whether the trustee should be authorized to file
objections. That is as far as the court of its own motion can go. If
the creditors of a bankrupt who is not entitled to be discharged fail to
object, they have no ground of complaint if the discharge is granted.
In re MeCANN.
(District Court, N. D. New York. May 27, 1918.)
BANKuPTrCY 26--SALE OF PROPERTY-RELEAsE OF PURCHASE FROM BID.
Where liquors, etc., belonging to the bankrupt, were sold expressly
- subject to payment of war taxes by the purchaser, but the bid was not
made or accepted on condition that arrangement to give bond for taxes
could be effected and another offer nearly equaled the bid, the purchaser
cannot be released from his bid on the theory that the liquors were ap-
praised too high, or because he was unable to make arrangements for
4 For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
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The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/1021/: accessed July 27, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.