Solicitor for the Affairs of His Majesty's Treasury v. Bankers Trust Co.

A debtor is sued by the assignee of a foreign creditor. The debtor admits the debt but asserts that the assignor — the original foreign creditor — is an adverse claimant. Pursuant to section 51-a of the Civil Practice Act, the debtor procures an order staying the action for one year, deposits the amount of the debt into court, and gives the prescribed notice to the original creditor that she must intervene in the action or bring a separate action in New York within one year and ten days or be forever barred. The original creditor fails to make a claim within the statutory period and is now…