A. J. Bumb, as Trustee in Bankruptcy for the Estate of Thompson Electric Co., Bankrupt v. Valley Electric Company, a California Corporation

Appellant, plaintiff in the district court, appeals from a judgment of the district court denying relief sought against appellee, defendant in the district court, on a complaint seeking recovery of. certain alleged voidable bankruptcy preferences under Section 60 of the National Bankruptcy Act ( 11 U.S.C. § 96 ).

The district court, inter alia, concluded that the adjudication in bankruptcy of bankrupt was void and without the ju risdiction of the court. This conclusion is based upon findings of fact made by the court that two of the three persons claiming to be creditors of the bankrupt, who filed the involuntary petition, were in fact not creditors of the bankrupt.

We agree with appellant’s contention that the court erred in reaching such conclusion.

The record discloses that .the adjudication of bankruptcy was based on an involuntary petition and the written consent of the bankrupt. No proceedings to review, or appeal from, the order of adjudication was ever taken.

It has been settled law for many years that an adjudication of bankruptcy is no more susceptible to collateral attack than other judgments or decrees of courts of competent jurisdiction.

In the case of Huttig…