[304 U.S. 502, 503] Messrs. Samuel E. Cook, of Huntington, Ind., and Wm. Lemke, of Washington, D.C., for petitioner.
Mr. Arthur S. Lytton, of Chicago, Ill., for respondent.
Mr. Justice REED delivered the opinion of the Court.
Petition for writs of certiorari to the United States Circuit Court of Appeals for the Seventh Circuit was granted by this Court, 303 U.S. 630 , 58 S.Ct. 644, 82 L.Ed. --; 303 U.S. 630 , 58 S.Ct. 645, 82 L.Ed. --, to review the judgments in two appeals brought to the lower court by petitioner here. In re Wright, Wright v. Union Central Life Ins. Co., 91 F. 2d 894. The judgments affirmed two orders of the District Court of the United States for the Northern District of Indiana, entered there in proceedings under section 75 of the Bankruptcy Act, 11 U.S.C.A. 203, instituted by Wright.
The earlier order approved the recommendation of the Conciliation Commissioner to strike certain described real estate from the debtor's schedules and the later [304 U.S. 502, 504] order refused to permit the debtor to amend the schedules by showing the circumstances under which the debtor claimed an interest in the same real estate covered by the earlier motion. The correctness of the orders depends largely upon the constitutional validity of certain provisions of section 75(n) of the Bankruptcy Act, as amended by section 4 of the Act of August 28, 1935, 49 Stat. 942, 11 U.S.C.A. 203(n). These provisions, held unconstitutional by the lower court, operate to extend the period of redemption from a foreclosure sale allowed the mortgagor under state law. To decide this important constitutional question, our writs of certiorari were issued. In view of section 1 of the Act of August 24, 1937, c. 754, 28 U.S.C. 401, 28 U.S.C.A. 401,1 enacted subsequent to the decision of the case below, the Court certified to the Attorney General the fact that the constitutionality of an Act of Congress affecting the public interest was drawn in question in this cause. The Attorney General disclaimed intention to intervene.
The controversy as to whether or not the land in question was subject to the administration of the court of bankruptcy had its origin in this plexus of facts. Petitioner James M. Wrigh on Oct ober 1, 1925, together with his wife, executed a mortgage to respondent com- [304 U.S. 502, 505] pany on a tract of land in Indiana, containing 80.31 acres, to secure a note of $3,000. At the same time, the same parties executed another mortgage to the respondent on a different tract of land containing 200 acres, also in Indiana, to secure a note of $9,000. In 1931, the first tract was deeded to petitioner's son, and three separate forty-acre parcels from the second tract were deeded to his wife, daughter and son-in- law respectively. The property was conveyed subject to definite portions of the indebtedness but without an assumption of any of the obligation by the grantees.
On January 3, 1934, respondent brought suit to foreclose the smaller mortgage, joining as defendants petitioner and his son. Judgment of foreclosure was entered, June 9, 1934, and on July 12,1934, the 80.31-acre tract was sold, on the foreclosure sale, to respondent. Respondent received a duly executed sheriff's certificate of sale. Delivery of final deed was delayed in view of the one-year period of redemption allowed to mortgagors by Indiana statute. Ind.Ann.Stat., Burns' 1933, 2-3909, 2- 4001
Wright filed a petition under section 75 of the Bankruptcy Act, October 29, 1934. In listing his property on his schedules, he set forth all 280.31 acres, despite his previous conveyances of 200.31 acres. On December 19, 1934, stating that no agreement of creditors could be had, he amended his petition under section 75(s), asking to be adjudged a bankrupt. 2 On April 13, 1935, petitioner's son [304 U.S. 502, 506] and daughter and their spouses delivered to him a quitclaim deed for all the property, 200.31 acres, he had previously deeded to them and his wife.