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IN RE SHERMAN PLASTERING CORPORATION

No. 300, Docket 29269.

346 F.2d 492 (1965)

In the Matter of SHERMAN PLASTERING CORPORATION, Debtor. Sherman Plastering Corporation, Appellant, The Hanover Insurance Company, Appellee.

United States Court of Appeals Second Circuit.

Decided May 26, 1965.

Attorney(s) appearing for the Case

Philip O. Eisenberg, New York City, for appellant.

Robert R. Hume, New York City (Hart, Hume & Engelman, New York City, on the brief) (Henry James Wallach, New York City, of counsel), for appellee.

Before MOORE, FRIENDLY and MARSHALL, Circuit Judges.

MARSHALL, Circuit Judge.

This appeal, like that reported at 340 F.2d 915 (2 Cir. 1965), involves the Chapter XI arrangement of Sherman Plastering Corporation [Sherman]. Unlike the other appeal, however, our concern is with section 681 of the Bankruptcy Act, which allows set-offs against a bankrupt by one of its debtors on condition that the debts are mutual.

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