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DINERMAN v. BOWLEY & TRAVERS, INC.

No. 195, Docket 27227.

301 F.2d 464 (1962)

Samuel DINERMAN, Petitioning Creditor, Appellant, v. BOWLEY & TRAVERS, INC., Alleged Bankrupt, Appellee.

United States Court of Appeals Second Circuit.

Decided April 13, 1962.

Attorney(s) appearing for the Case

Ralph Heyman, Brooklyn, N. Y., for petitioning creditor, appellant.

Charles Sutton, Brooklyn, N. Y. (Bonom & Wolfson, Brooklyn, N. Y., on the brief), for alleged bankrupt, appellee.

Before LUMBARD, Chief Judge, and CLARK and FRIENDLY, Circuit Judges.

LUMBARD, Chief Judge.

This appeal presents the question whether a creditor who, in his role as a director of and a stockholder in the debtor, induces the debtor to make a general assignment for the benefit of creditors is precluded from filing a petition in bankruptcy alleging the general assignment as an act of bankruptcy. We hold that he is.

On January 27, 1959, Harold Bowley and James Travers (herein the sellers) sold an insurance brokerage business to...

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