Sword Line, Inc. v. Industrial Commissioner of State of New York
Court of Appeals for the Second Circuit
On July 2, 1952, the debtor moved before the Referee for (1) an order expunging the warrant from the state judgment docket, (2) a permanent injunction against any proceeding by the respondent against the debtor outside the bankruptcy court, and (3) a determination of the question whether or not interest arose on the claim of respondent after July 30, 1948. The Referee found, as a “conclusion of law,” that respondent was not entitled to interest on his claim beyond the date…
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On July 2, 1952, the debtor moved before the Referee for (1) an order expunging the warrant from the state judgment docket, (2) a permanent injunction against any proceeding by the respondent against the debtor outside the bankruptcy court, and (3) a determination of the question whether or not interest arose on the claim of respondent after July 30, 1948. The Referee found, as a “conclusion of law,” that respondent was not entitled to interest on his claim beyond the date of the filing of the debtor’s petition for an arrangement.; accordingly he granted debtor’s motion. Respondent petitioned…
1Opinion of the Court
CLARK, Circuit Judge.
It is conceded, as it must be in the light of relevant Supreme Court decisions, that bankrupt estates cannot be directly used to pay post-bankruptcy interest on claims against the bankrupt for unpaid taxes. This was settled for ordinary bankruptcy by the leading case of City of New York v. Saper, 336 U.S. 328, 69 S.Ct. 554, 93 L.Ed. 710; for proceedings in reorganization by United States v. Edens, 342 U.S. 912, 72 S.Ct. 357, 96 L.Ed. 682, affirming 4 Cir., 189 F.2d 876; for proceedings by way of arrangement by United States v. General Engineering & Mfg. Co., supra, 342…
2Cases cited21 opinions
- Local Loan Co. v. HuntSupreme Court of the United States · 1934
- City of New York v. SaperSupreme Court of the United States · 1949
- American Iron & Steel Manufacturing Co. v. Seaboard Air Line RailwaySupreme Court of the United States · 1914
- Redfield v. Ystalyfera Iron Co.Supreme Court of the United States · 1884
- Johnson v. NorrisCourt of Appeals for the Fifth Circuit · 1911
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3Cited by25 opinions
- Lesser v. A-Z Associates (In Re Lion Capital Group)United States Bankruptcy Court, S.D. New York · 1985
- In Re BusmanUnited States Bankruptcy Court, E.D. New York · 1980
- United States v. J. Allen Harrington, Trustee, in the Matter of G. N. Childress, Dba Childress Transportation Company, BankruptCourt of Appeals for the Fourth Circuit · 1959
- In Re Jaylaw Drug, Inc., Debtor. Jaylaw Drug, Inc. v. United States Internal Revenue Service, and Empire National BankCourt of Appeals for the Second Circuit · 1980
- National Foundry Co. Of N.Y., Inc., Debtor-Appellant v. Director of Internal Revenue, Claimant-AppelleeCourt of Appeals for the Second Circuit · 1956
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