Kane v. Smith

— We are concerned with the effect of the dismissal of a voluntary bankruptcy proceeding upon a turn over order, which order, and the right to enforce it, had been assigned to a third party for a “fair and just” consideration.

Joseph Lincoln Smith (the defendant in this action) had filed a voluntary petition in bankruptcy July 8, 1954. Subsequently, on April 11, 1956, after a hearing before a referee in bankruptcy, an order was entered directing that the bankrupt turn over and deliver to the trustee the sum of $3,811.60.

Subsequently, the referee entered an order reciting.that Patrick Kane (the…