Harry F. White, Bankrupt v. Public Loan Corporation

JOHNSEN, Circuit Judge.

After the discharge of a bankrupt, a creditor instituted suit against him in a state court for fraud and deceit allegedly perpetrated in the obtaining of a loan, which obligation the bankrupt had duly scheduled as a debt in the bankruptcy proceeding. The creditor, although given notice and having opportunity both to file its claim and to make objection to the bankrupt’s discharge, had chosen to stay entirely out of the bankruptcy proceedings.

The bankrupt, by ancillary petition, sought an injunction against the creditor. The Referee, after a hearing, enjoined the…