City of New York v. New York, New Haven & Hartford Railroad

The question presented is whether under the circumstances of this case reorganization of the respondent railroad under § 77 of the Bankruptcy Act 1 destroyed and barred enforcement of liens which New York City had imposed on specific parcels of the railroad’s real estate for street, sewer and other improvements. The improvements were made and the liens were all laid prior to 1931. Reorganization was begun in the District Court in 1935. Subsequently, acting pursuant to subdivision (c)(7) of § 77 the court issued an order directing “creditors” to file their claims by a prescribed date, after…