Cilley v. Colby
Supreme Court of New Hampshire
Assumpsit, on a note dated July 14, 1876, signed by the defendant as surety. The principal filed his petition in bankruptcy February 6, 1877. The plaintiff proved his claim, and voted for assignee.
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Assumpsit, on a note dated July 14, 1876, signed by the defendant as surety. The principal filed his petition in bankruptcy February 6, 1877. The plaintiff proved his claim, and voted for assignee. Subsequently the bankrupt submitted to his creditors a proposition for a composition of 10 per cent, in satisfaction of their claims, under s. 17 of the amendment to the bankrupt act approved June 22, 1874. The creditors passed a resolution accepting the proposition, the plaintiff voting to ratify and confirm it. His signature was necessary to make the required amount and confirm the resolution.…
1Opinion of the CourtStanley, J.
The defendant is liable, unless the plaintiff’s vote in favor of a resolution accepting the proposition of 10 per cent., to be paid to the creditors in discharge of their claims against the principal, has the effect to release him. In a composition, no actual discharge of the principal is given; but the payment of the amount offered, and its acceptance by the creditor, is in effect a discharge, for by it all right of action against the bankrupt is barred. “No discharge shall release, discharge, or affect any person liable for the same debt for or with the bankrupt, either as partner, joint…
2Cases cited3 opinions
- Guild v. ButlerMassachusetts Supreme Judicial Court · 1877
- Hill v. TrainerWisconsin Supreme Court · 1880
- Farwell v. RaddinMassachusetts Supreme Judicial Court · 1880