Corden Corp. v. Williams

This is an appeal by two creditors of the bankrupt partnership, University Drug ■Company, of which Ralph E. Williams is trustee, from an order of the District Court disallowing their claims because they were not filed within the time allowed by law.

The University Drug Company, a partnership, filed a petition on April 20, 1935, for composition and extension, alleging it was unable to meet its debts as they matured. The petition was filed under section 74, Bankr.Act, as amended, 11 U.S.C.A. § 202 , and note, providing for. the relief of noncorporate debtors.

The petition was approved as properly filed, and referred to a referee. Notice was sent by the referee to the creditors, inclosing the schedules filed by the petitioner. The notice advised the creditors of the first meeting to effect a composition, and advised them that claims must be prepared in the form required by the Bankruptcy Act. There was no specification in the notice as to when claims should be filed.

Efforts to effect a composition were a failure, and hence, as section 74(7), as amended, 11 U.S.C.A. § 202 (l), requires, on August 9, 1935, the debtor was adjudicated bankrupt. Within six months of this adjudication…