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SWORD LINE v. INDUSTRIAL COMMISSIONER OF STATE OF N. Y.

No. 132, Docket No. 22860.

212 F.2d 865 (1954)

SWORD LINE, Inc. v. INDUSTRIAL COMMISSIONER OF STATE OF NEW YORK.

United States Court of Appeals, Second Circuit.

Decided April 27, 1954.

Attorney(s) appearing for the Case

R. H. Guthrie, New York City (Mudge, Stern, Williams & Tucker and Ara P. Blanc, New York City, on the brief), for appellant.

Samuel Stern, Asst. Atty. Gen. of State of New York (Nathaniel L. Goldstein, Atty. Gen. of State of New York, Wendell P. Brown, Sol.-Gen., Albany, N. Y., and Francis R. Curran, Asst. Atty. Gen., on the brief), for appellee.

Before CLARK, FRANK, and HINCKS, Circuit Judges.

CLARK, Circuit Judge.

It is conceded, as it must be in the light of relevant Supreme Court decisions, that bankrupt estates cannot be directly used to pay post-bankruptcy interest on claims against the bankrupt for unpaid taxes. This was settled for ordinary bankruptcy by the leading case of City of New York v. Saper, 336 U.S. 328, 69 S.Ct. 554, 93 L.Ed. 710; for proceedings in reorganization by United States v. Edens, 342 U.S. 912...

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