Hutson

A petition for reorganization under Section 77B of the Bankruptcy Act, 11 U.S.C.A. § 207 , was filed by C. S. Hutson & Company, a corporation, following the filing against it of an involuntary petition in bankruptcy. An order for liquidation was entered and the appellee here was. appointed trustee.

C. S. Hutson, president, manager and major stockholder of the bankrupt corporation, filed a claim in the bankruptcy proceedings on the basis of “Services rendered,” for the amount of $7,400.54, with a set-off of $4,126.88, evidenced by a note. *641 No detail or itemization was given m the “Proof of Unsecured Debt.” The trustee filed objection to the allowance of the claim upon the ground that the records of the bankrupt were not correct in that the true facts evidenced Hutson to be indebted to the bankrupt in a sum in excess of $25,000; that the purported claim arose out of fictitious sales of property and corresponding entries therefor, wherein C. S. Hutson purported to sell to the bankrupt a one-fourth interest in the American Bank Check Co., and received credit for $25,000 on his personal account (which had been heavily overdrawn), although at the time Hutson had no interest in that…