Sidney F. Paton, Bankrupt and v. John M. England, Trustee And

ORDER AFFIRMING JUDGMENT

Before KOELSCH, HUFSTEDLER and WRIGHT, Circuit Judges.

The matter is here on the bankrupt’s petition to review the judgment of the district court which affirmed the referee’s denial of a discharge in bankruptcy.

Denial was rested on the statutory ground that the bankrupt “while engaged in business as a . . . partnership . . . [had] obtained for such business money or property on credit ... by making a materially false statement in writing respecting his financial condition or the financial condition of such partnership. . . .” 11U.S.C. § 32(c) (3).

Petitioner does not deny that his financial manipulations bring him within the above quoted statute; his attack is directed against the statute. Stressing that the adjudication was not on a voluntary petition, but on one filed against him by creditors, he argues that “It is inconsistent with fairness and justice to permit creditors to involuntarily subject a debtor to bankruptcy administration and at the same time deny him its primary relief. . . .” We must disagree.

It is at least doubtful that discharge of the debtor is the “primary relief” in instances where the adjudication is involuntary. See Freshman…