288 U.S. 329 (1933), 304, New York v. Irving Trust Co.
|Docket Nº:||No. 304|
|Citation:||288 U.S. 329, 53 S.Ct. 389, 77 L.Ed. 815|
|Party Name:||New York v. Irving Trust Co.|
|Case Date:||February 13, 1933|
|Court:||United States Supreme Court|
Argued January 13, 1933
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SECOND CIRCUIT
1. The provision of the Bankruptcy Act (§ 57) that claims shall not be proved after six month from adjudication, does not apply to the United States or the state, since they are not mentioned. P. 331.
2. The Federal Government possesses supreme power in respect of bankruptcies. If a state desire to participate in the assets of a bankrupt, she must submit to appropriate limitations on the time for presenting claims. P. 333.
3. The court of bankruptcy made an order that claims not filed within sixty days after service of the order should be barred. The state, after service, allowed the time to expire, and then filed notice of a possible demand for taxes, stating that a definite claim would be presented when necessary reports, etc., could be obtained. Held that the District Court had power to expunge the notice.
58 F.2d 980, 981, affirmed.
Certiorari, 287 U.S. 587, to review a judgment affirming, with modification, an order expunging a notice of future claim, filed out of time by the state, in a bankruptcy proceeding.
MCREYNOLDS, J., lead opinion
MR. JUSTICE McREYNOLDS delivered the opinion of the Court.
[53 S.Ct. 390] The Experimenter Publishing Company was adjudged bankrupt March 6, 1929. The Irving Trust Company became
trustee. Upon its petition, the referee, July 1, 1929, directed that "proof of any and all claims which the New York may have against the estate of the above named bankrupt" shall be filed within sixty days after service of this order; otherwise, they shall be forever barred. Proper service was had July 18, 1929.
October 20, 1929, the state filed notice of a possible demand for additional franchise taxes for 1917 to 1928, and stated that definite claim therefor would be presented when necessary reports, etc., could be obtained. No further proof has followed.
March 30, 1931, the trustee asked and obtained a referee order striking from his files the notice of October 20th. He held that the claim for taxes "cannot be filed after the expiration of the bar order date," and declared,
The state has only itself to blame for the situation it finds...
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