Rapple

(after stating the facts as above). [1] The petitioner’s contention is based upon the decision in Conroy v. Woods, 13 Cal. 626 , 73 Am. Dec. 605 , in which the court said:

—and it is contended that the decision has become a rule of property rights in California which the bankruptcy court was bound to observe, and the petitioner contends, further, that, irrespective of the effect of that decision, the rule so announced therein is applicable here for the reason that the gist of the case is the retiring partner’s equity invoked in respect to a firm asset which is in the custody of the court. The doctrine of Conroy v. Woods is against the very decided weight of authority. In 30 Cyc. 545, it is said:

The same rule is announced in 22 Am. & Eng. Enc. of Law, 133; 2 Lindley on Partnership, § 603; and Bates on Partnership!, § 550. In Loveland on Bankruptcy (4th Ed.) 554, it is said:

Of, similar import is Remington on Bankruptcy (2d Ed.) 2269.

The rule d'educible from these authorities is that when a member of a solvent copartnership sells in good faith his interest to his co-partner, and the latter assumes the payment of the debts, the retiring partner loses his equitable right to…