Philip I. Palmer, Jr., as Trustee in Bankruptcy of Maxwell Electronics Corporation, D/B/A Kmec-Tv, Bankrupt v. James A. Justice

This appeal by a trustee in bankruptcy centers entirely on the denial of a claim brought under § 70(e) of the National Bankruptcy Act. 11 U.S.C.A. § 110(e). The claim was to avoid payments made to appellees by Maxwell Electronics, the bankrupt, for corporate stock in Maxwell.

The purchase was made by Maxwell and the stock transferred in 1963 when Maxwell had adequate surplus to warrant the purchase. Payment was made by promissory notes which were paid in 1966 when Maxwell was solvent but at a time when its surplus account was insufficient to cover the payments. Maxwell was adjudicated a…