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Procedure in Involuntary Cases.

[Ch. IV.

92 Fed. 904; In re Soper et al. 1 Am. B. R. 193, referee's opinion.) As to the person before whom the verification may be made see section 20. The petition must be filed within four months after the commission of the act of bankruptcy. (Section 3b.)

Upon the filing of such petition the clerk enters an order requiring that a copy of the petition with the writ of subpoena be served upon the said bankrupt, that he appear and show cause upon the return day why the prayer of the petitioner should not be granted. This order and writ of subpoena must be served upon him personally or by leaving the same at his last place of abode within five days before the return day. (See Form No. 4.) Upon this order a writ of subpoena is issued by the clerk (Form No. 5) which is to be served as prescribed in the section.

As to the time when the petition is returnable see section 18a, which also fixes the time and manner of service. And see further Equity Rules with reference thereto quoted at the beginning of the notes to this section, particularly Equity Rule 15. There is nothing to prevent an appearance and waiver of service. (See In re Columbia Real Estate Co. [C. C. A.] 4 Am. B. R. 411; 101 Fed. 965; and see Leidigh Carriage Co. v. Stengel, 2 Am. B. R. 383; 37 C. C. A. 210; 95 Fed. 637.) As to service by publication provided for in section 18a, see 18 U. S. Stats. at L. 472; I Sup. Rev. Stat. 176; Rev. Stat. sec. 738, providing in substance that where a defendant is absent from the district in which the proceeding is brought the court may make an order directing such defendant to appear to plead, answer or demur at a day to be designated, and if such defendant cannot be served, such order shall be published as the court directs for at least once a week for six consecutive weeks, and upon proof of the due publication the court obtains jurisdiction over the property which is within the territorial jurisdiction of the court.

Upon the return day the bankrupt or any creditor may plead to the petition. The pleading may consist of a demurrer or a denial. The form of the denial is given in Form No. 6. If he demurs and the court overrules the demurrer, an absolute adjudication in bankruptcy may be entered up, but he may be allowed to

18.] Proceedings in Voluntary Bankruptcy — Amendment of Petition.

answer over, and usually is, in the discretion of the court. If the allegations of the petitions are indefinite and uncertain, the defendant may decline to plead, and may move the court to dismiss the petition. The court in its discretion may dismiss or may enter an order requiring the petitioner to file a more definite petition. See what is said under the subject of Acts of Bankruptcy, section 4. The burden of proof always rests upon the petitioner.

In pleading, the bankrupt is not confined to the forms and orders of the Supreme Court but may set up any defense or counter-claim which will show him to have been solvent at the time. the act of bankruptcy was committed. (In re Paige, 3 Am. B. R. 679; 99 Fed. 538.) As to the preparation of the schedules in involuntary proceedings see section 7 (8). As to order of proceeding where petitions are filed in different districts see section. 32; G. O. 6. As to amendment of pleadings including petition see G. O. II. In the application for leave to amend the cause of error should be stated. As to designation of newspapers in which the notice shall be published see section 28. Upon the return day as pointed out in the section, the determination is to be had. Either the debtor is adjudicated a bankrupt or else the petition is dismissed as pointed out in the section. Subsequent proceedings are treated of in other parts of the statute.

Proceedings in Voluntary Bankruptcy.-As to who may file a voluntary petition see section 59a and section 4. As to matters of jurisdiction see section 2 (1). As to form of petition and schedules see Form No. I. As to amendments see G. O. II. After the adjudication the proceedings in voluntary bankruptcy are the same as in involuntary bankruptcy.

Amendment of Petition.-Bankruptcy courts have the usual power of courts of justice upon motion and for good cause, to authorize amendments of pleadings, including petitions. They will rarely do so if the purpose of the amendment is to introduce allegations setting up an additional or new act of bankruptcy. But even such an amendment will be allowed if clearly in furtherance

Cross References-Jury Trials.

[Ch. IV. of justice, and if its omission from the original petition is properly excused. (In re Craft, Fed. Cas. 3,317; 6 Blatch. 177; s. c. below, 2 N. B. R. 111; in re Gallinger, Fed. Cas. 5,202; 4 N. B. R. 729; in re Leonard, Fed. Cas. 8,255; 4 N. B. R. 563.)

Cross References.-As to who may be petitioners, as to the amount and character of their claims, as to the right of other creditors than the petitioners to intervene and support the petition, as to the duty of the court to refuse to permit the withdrawal of a petition without notice to creditors and as to estoppel of petitioners, see section 59. As to the designation of newspapers in which notices shall be published, see section 28. As to the districts in which the petition may be filed, see section 2 (1).

SEC. 19. Jury Trials.-a A person against whom an involuntary petition has been filed shall be entitled to have a trial by jury, in respect to the question of his insolvency, except as herein otherwise provided, and any act of bankruptcy alleged in such petition to have been committed, upon filing a written application therefor at or before the time within which an answer may be filed. If such application is not filed within such time, a trial by jury shall be deemed to have been waived.

b If a jury is not in attendance upon the court, one may be specially summoned for the trial, or the case may be postponed, or, if the case is pending in one of the district courts within the jurisdiction of a circuit court of the United States, it may be certified for trial to the circuit court sitting at the same place, or by consent of parties when sitting at any other place in the same district, if such circuit court has or is to have a jury first in attendance.

c The right to submit matters in controversy, or an alleged offense under this act, to a jury shall be determined and enjoyed, except as provided by this act, according to the United States laws now in force or such as may be hereafter enacted in relation to trials by jury.

Analogous Provisions of Former Acts.

As to jury trials in involuntary proceedings: R. S. section 5026; act of 1867. sections 41 and 42; act of 1841, section 1. As to jury trials upon specifications

19.]

Statutory Provisions as to Jury Trials.

filed against the granting of a discharge: R. S. section 5111; act of 1867, section 31; act of 1841, section 4.

The Issue of Insolvency.-Compare section 3 (c) and (d).

Statutory Provisions as to Jury Trials.-U. S. Revised Statutes, section 566, provides that "the trial of issues of fact in the district courts in all causes (except cases in equity and cases of admiralty and maritime jurisdiction, and except as otherwise provided in proceedings in bankruptcy), shall be by jury." Section 648 provides that" the trial of issues of fact in the Circuit Court shall be by jury (except in cases of equity and of admiralty and of maritime jurisdiction), and except as otherwise provided in proceedings in bankruptcy and by the next section.” Section 649 provides that "issues of fact in civil cases in any Circuit Court may be tried and determined by the court, without the intervention of a jury, whenever the parties, or their attorneys of record, file with the clerk a stipulation in writing waiving a jury. The finding of the court upon the facts, which may be either general or special, shall have the same effect as the verdict of a jury."

But it seems to be very clear that inasmuch as a bankruptcy proceeding is a proceeding in equity the only issues to be submitted as of right to the jury are those referred to in section 19a, and then only upon demand by the defendant. (Compare Simonson v. Sinsheimer, 3 Am. B. R. 824; 40 C. C. A. 474; 100 Fed. 426; in re Christensen, 4 Am. B. R. 99; 101 Fed. 802.)

There seems to be no provision for the impaneling of a jury to pass upon questions of fact arising in a bankruptcy proceeding, except by virtue of the provisions of section 19 of the bankruptcy law; but, as in all other equity cases, it is presumable that a specific issue of fact may be framed and sent to a jury, but the court is not bound by the findings of the jury upon the facts, and may adopt or reject them altogether. (See McNaughton v. Osgood, 114 N. Y. 574; McClave v. Gibbs, 157 id. 413, and cases cited.) Speaking of this question, the United States Supreme Court, per Woods, J., in Barton v. Barbour (104 U. S. 126), said: “The

Oaths, Affirmations - Taking Oaths under Former Act.

[Ch. IV.

bankruptcy court may and, in cases peculiarly requiring such a course, will direct an action or an issue at law to aid it in arriving at a right conclusion. But this rests in its sound discretion." It would seem to follow from this that the bankruptcy court, like any other court of equity, may frame issues for submission to a jury, and the method of sending it to a jury would doubtless be that prescribed in section 19b, which provides that the question of fact may be certified for trial to a District Court or a Circuit Court in the same district which has or is to have a jury first in attendance.

What has been said does not of course apply to any collateral proceedings of either civil or criminal nature arising out of bankruptcy in which the right of jury trial is constitutional.

SEC. 20. Oaths, Affirmations.-a Oaths required by this act, except upon hearings in court, may be administered by (1) referees; (2) officers authorized to administer oaths in proceedings before the courts of the United States, or under the laws of the State where the same are to be taken; and (3) diplomatic or consular officers of the United States in any foreign country.

b Any person conscientiously opposed to taking an oath may, in lieu thereof, affirm. Any person who shall affirm falsely shall be punished as for the making of a false oath.

Analogous Provisions of Former Acts.

As to verification of schedules and inventory: R. S. section 5017; act of 1867, section II. As to oaths and proof of claims: R. S. section 5079; act of 1867, section 22; act of July 27, 1868, ch. 258. section 3; also R. S. section 5076; act of 1867. section 22; act of July 27th, 1868, ch. 258 section 3; act of 1841 sections 5 and 7; also R. S. section 5076a.

Taking Oaths under the Former Act.-The liberal provisions of this act as to taking oaths did not prevail under the Act of 1867. Not until that act was amended by section 5.076a, Revised Statutes (passed June 22, 1874), could notaries public take proof of claims. Before that time oaths in proof of claims by residents

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