IN RE SAMUEL CHAPMAN, INC.

No. 435, Docket 31750.

394 F.2d 340 (1968)

In the Matter of SAMUEL CHAPMAN, INC., Bankrupt. UNITED STATES of America, Claimant-Appellant, v. NEW YORK CREDITMEN'S ADJUSTMENT BUREAU, INC., Trustee-Appellee.

United States Court of Appeals Second Circuit.

Decided May 10, 1968.


Attorney(s) appearing for the Case

Ezra H. Friedman, Asst. U. S. Atty. (Robert M. Morgenthau, U. S. Atty., for the Southern District of New York and Lawrence W. Schilling, Asst. U. S. Atty., on the brief), for appellant.

Marks F. Paskes, New York City (Hahn, Hessen, Margolis & Ryan and Robert B. Schindler, New York City, on the brief), for appellee.

Before HAYS, ANDERSON and FEINBERG, Circuit Judges.


HAYS, Circuit Judge:

This is an appeal from a judgment of the district court which affirmed an order of the Referee in bankruptcy disallowing claims by the United States against the estate of a bankrupt for penalties for failure of the debtor in possession to make required deposits of withheld taxes and to file timely returns during an arrangement proceeding under Chapter XI which preceded the adjudication of bankruptcy. We hold that the penalties in question should...

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