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The Annotated Code of the Public General Laws of Maryland, 1939
Volume 379, Page 2032   View pdf image (33K)
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2032 ARTICLE 47

How petition by non-resident corporation should be authenticated both when filed
and before adjudication; proof of corporate existence need not be filed with petition
though it ought to be produced before adjudication. Whyte v. Betts Machine Co.,
61 Md. 177.

The petition may be filed by a non-resident. Brown v. Smart, 69 Md. 328 (affirmed
in 145 U. S. 457).

A replication is not contemplated in insolvency proceedings. How issues should
be framed; duty of the court. Castelberg v. Wheeler, 68 Md. 273.

Operation of insolvent law.

The enactment of a bankruptcy law suspends a state insolvency law only, so far
as the two conflict. The latter continues in force as to any class of persons exempted
by former. It is the exercise of the power of establishing a bankrupt law and not
the existence of such power, which renders the state law inoperative. It is policy of
this section to make farmers subject to its provisions. Old Town Bank v. McCormick,
96 Md. 349.

Fact that grantee or party to whom money is paid has no knowledge that grantor
is insolvent, does not take the case out of operation of this section. Prayers correctly
setting forth facts requisite to bring a case under this section. Willison v. Frostburg
Bank, 80 Md. 212.

Corporations are not amenable to our insolvent system, though by art. 23, sec. 377, of
the Code of 1904—see sec. 99 of this Code—they are brought within the operation of a
provision of that system. Mowen v. Nitsch, 103 Md. 687.

This section and sec. 2 compared as to the persons to whom they are applicable,
and as to the necessity for a deed from the debtor to the preliminary trustee. Clark
v. Manko, 80 Md. 82.

Jurisdiction.

Insolvency jurisdiction is limited, and the procedure must be pursued in the manner
prescribed; where debtor is not summoned, court is without jurisdiction. Whyte v.
Betts Machine Co., 61 Md. 177; Paul v. Locust Point Co., 70 Md. 292.

If a case is within jurisdiction of insolvent court, the latter's judgment cannot be
impeached collaterally in absence of fraud. The jurisdiction of insolvent court does not
depend upon petitioner being actually insolvent. State v. Culler, 18 Md. 432. And
see Weaver v. Leiman, 52 Md. 714.

Generally.

The adjudication is in rem, and binds all persons, whether parties or not, as to
the particular matter decided. Brown v. Smart, 69 Md. 328 (affirmed in 145 U. S. 457).

The right to issue an injunction is limited to time and purpose specified in this
section. No controversy as to ownership of property or claim to it can be disposed
of in insolvent court, but they are remitted to other courts where a jury trial may be
had. Paul v. Locust Point Co., 70 Md. 293.

Insolvency proceedings from petition to the last order may be amended in discre-
tion of court. An amended petition held not to be an original proceeding, and hence
that proceeding was begun within requisite period after acts complained of. Griffee v.
Mann, 62 Md. 254.

It is not necessary that the debts of the petitioning creditors shall have matured
before the petition is filed. Schiff v. Solomon, 57 Md. 583.

A creditor who claims a fund arising from sale of property of insolvents, will not
be allowed to impeach the adjudication. Gottschalk v. Smith, 74 Md. 564.

The constitutional right of removal has no application to insolvency proceeding or
issues framed in pursuance thereof. Bel Air, etc., Club v. State, 74 Md. 300; Trayhem v.
Hamill, 53 Md. 90; Michael v. Schroeder, 4 H. & J. 227.

Where before a petition under this section is filed petitioning creditors file their
claims for their distributive shares under a deed for benefit of creditors, such action
does not amount to an estoppel. So long as deed of trust stands, it is effectual.
Castleberg v. Wheeler, 68 Md. 273.

The insolvent law prior to amendment which added the involuntary feature, did not
contemplate insolvency of co-partnership or joint debtors. There is nothing in this
section to change the law in this respect. Cator v. Martin, 57 Md. 401. See Pinckney v.
Lanahan, 62 Md. 454; Schiff v. Solomon, 57 Md. 581. See also sec. 30.

Intention of sections regulating involuntary insolvency. Law prior to the adoption
of sec. 36. Riley v. Carter, 76 Md. 605. See also in this connection, Pfaff v. Prag, 79
Md. 372.

Cited but not construed in Baltimore v. Libowitz, 159 Md. 36.

This section referred to in construing sec. 14. Industrial Service v. Rogers, 163 Md. 660.

Cited but not construed in Gardner v. Gambrill, 86 Md. 660.

As to the debtor's discharge, see sec. 5 and notes.


 

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The Annotated Code of the Public General Laws of Maryland, 1939
Volume 379, Page 2032   View pdf image (33K)
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