In re Unity Cleaners & Dyers, Inc.

PATTERSON, District Judge.

These are cross-motions, one by a receiver in bankruptcy of the bankrupt and one by a receiver appointed by the state court in supplementary proceedings, each seeking possession of the assets.

The bankrupt is a New York corporation. A creditor recovered judgment against it in December 1937. On January 14, 1938 the judgment creditor instituted supplementary proceedings by service of a subpoena on the bankrupt, in accordance with section 774 of New York Civil Practice Act. On May 11, 1938, one Arbiter was appointed receiver in supplementary proceedings in behalf of the…