MATTER OF STRAUS

MATTER OF STRAUS. N. Y. Supreme Court, Fourth Department ; General Term, April, 1881. Effect of Composition in Bankruptcy on State Assignment.— Right to Accounting by Assignee. Where a debtor makes an assignment for benefit of creditors under the State general assignment act, and also goes into bankruptcy, a composition under the bankrupt act is not sufficient ground for allowing the assignee in the State court to turn over the assets to the assignor and be discharged, if it does not appear whether the bankruptcy court considered the State assignment as security to the creditors, nor whether the creditors secured by it proved their debts for their whole face, or for what part, nor whether the proposition for composition contemplated the relinquishment of the security, nor whether the bankrupt court, in approving it, took into consideration the assigned assets, as part of the percentage payable, nor whether the composition provided that creditors should relinquish their security under the assignment, nor whether that court authorized the assignee to deliver back the assigned assets. Bight to an accounting in a State court by assignee for the benefit of creditors cannot be divested by the mere fact of a composition in bankruptcy, unless that right is in some way relinquished by the creditors or divested by the bankruptcy court. Wanning & Williams, for appellant. J. & Q. Van VoorMs, for respondent Parsells. [MAJORITY] Held, as above, in an opinion by Taloott, J.