In the Matter of Joseph Di Palo, Bankrupt-Appellant, Lloyd G. Weinberger, Trustee-Appellee

On specifications of objection to the Bankrupt’s discharge, the Referee found that the Bankrupt kept no books or records from which his financial status could be intelligently or accurately ascertained. After this showing that reasonable grounds existed for belief that the Bankrupt had committed an act which precludes a discharge, the burden of disproving the proscribed act shifted to the Bankrupt under the terminal proviso of Section 14, sub. c of the Act, 11 U.S.C.A. § 32, sub. c. In re Muss, 2 Cir., 100 F.2d 395; Federal Provision Co. v. Ershowsky, 2 Cir., 94 F.2d 574. The Referee found…