McAvoy v. United States

SWAN, Circuit Judge.

This appeal raises interesting questions as to the power of the bankruptcy court to restrain the United States, which has filed a proof of claim in the bankruptcy proceedings, from seeking to intervene as a party plaintiff in an action pending in a federal court of another district, by which the bankrupt and its trustee are endeavoring to recover moneys due under a contract of which the United States holds an assign ment as security for its claim against the bankrupt.

Upon an involuntary petition in bankruptcy filed in July 1947, Rumsey Manufacturing Corporation, a New York…