Mill Factors Corp. v. Crowley

BIGGS, Circuit Judge.

The question presented by the appeal at bar is whether a trustee appointed pursuant *47to Section 77B1 of the Bankruptcy Act as amended, first to operate the debtor’s business and then to liquidate its assets, may be surcharged because he has paid certain Federal Social Security taxes and state unemployment compensation taxes, it appearing upon liquidation that the assets of the debtor are insufficient to meet expenses of administration in full.

The facts are as follows. Upon April 27, 1937 an involuntary petition having been filed against the debtor, the appellee was…