In the Matter of Unishops, Inc., Debtor. Jerome Zelin, Claimant-Appellant v. Unishops, Inc., Debtor-Appellee

MEDINA, Circuit Judge:

Jerome Zelin appeals from a judgment in the Southern District of New York by Judge Thomas P. Griesa reversing an order of Bankruptcy Judge Roy Babitt which had allowed Zelin’s claim for $100,000 as an expense of administration of Unishops, Inc., a debtor in possession in a Chapter XI arrangement proceeding, thereby giving the claim first priority under Section 64(a)(1) of the Bankruptcy Act, 11 U.S.C. Section 104(a)(1), and permitting payment of the claim in full. The District Court held that Zelin’s claim is not entitled to priority. 417 F.Supp. 405 (S.D.N.Y.1976).

The…