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IN RE HANKEY BAKING COMPANY

No. 22102.

125 F.Supp. 673 (1954)

In the matter of HANKEY BAKING COMPANY, a corporation, Debtor.

United States District Court W. D. Pennsylvania.

November 17, 1954.

Attorney(s) appearing for the Case

Robert A. Jarvis, Pittsburgh, Pa., for trustee.

John W. McIlvaine, U. S. Atty., and John A. DeMay, Jr., Asst. U. S. Atty., Pittsburgh, Pa., for the Government.

GOURLEY, Chief Judge.

In this reorganization proceeding, the issue is raised as to whether the provisions of Section 57, sub. j, of the Bankruptcy Act apply to a tax penalty which has been liened of record prior to the institution of said reorganization.

Section 57, sub. j, of the Bankruptcy Act provides as follows:

"Debts owing to the United States or any State or subdivision thereof as a penalty or forfeiture shall not be allowed, except...

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