Stearns & Foster Co. v. Pacific Bowling & Billiard Co.

JAMESON, District Judge:

On June 22, 1965, appellants filed a creditor’s petition seeking to have appellee adjudicated a bankrupt and alleging as acts of bankruptcy (1) preference, (2) fraudulent transfer, and (3) appointment of a receiver or trustee. On November 30, 1965, an order was entered by the Referee in Bankruptcy adjudicating appellee a bankrupt on the basis of Section 3a(5) of the Bankruptcy Act, 11 U.S.C. § 21a(5), which provides in pertinent part that it is an act of bankruptcy if a debtor “while insolvent or unable to pay his debts as they mature, procured, permitted, or suffered…