J. M. Deutsch, Inc. v. Robert Paper Co.

Order entered on March 9,1961, insofar as it denies defendants’ cross motion, pursuant to rule 106 of the Rules of Civil Practice, to dismiss the amended complaint, unanimously affirmed, on the law, without costs. The agreement between the parties, a copy of which is annexed to the complaint, has the effect of conferring a secret preference upon a particular creditor of the plaintiff corporation when a debtor in a proceeding brought pursuant to chapter XI of the Federal Bankruptcy Act. It is clear that such agreement was illegal and also void as against public policy (see U. S. Code, tit. 18,…