Samuel Dinerman, Petitioning Creditor v. Bowley & Travers, Inc., Alleged Bankrupt

LUMBARD, Chief Judge.

This appeal presents the question whether a creditor who, in his role as a director of and a stockholder in the debt- or, 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 Bowley & Travers, Inc. (herein B & T) for $32,500, $10,000 in cash and a series of promissory notes for the balance. All the stock of B & T…