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IN RE JAYLAW DRUG, INC.

No. 974, Docket 79-5062.

621 F.2d 524 (1980)

In re JAYLAW DRUG, INC., Debtor. JAYLAW DRUG, INC., Plaintiff-Appellant, v. UNITED STATES INTERNAL REVENUE SERVICE, Defendant-Appellee, and Empire National Bank, Defendant.

United States Court of Appeals, Second Circuit.

Decided May 5, 1980.

Attorney(s) appearing for the Case

Harvey S. Barr, Barr & Faerber, Spring Valley, N. Y., for plaintiff-appellant.

Stuart M. Bernstein, Asst. U. S. Atty., New York City (William M. Tendy, U. S. Atty. for the Southern District of New York, and Michael H. Dolinger, Asst. U. S. Atty., New York City, of counsel), for defendant-appellee.

Before FRIENDLY, FEINBERG and TIMBERS, Circuit Judges.

FRIENDLY, Circuit Judge:

Jaylaw Drug, Inc. (Jaylaw), a debtor which has been rehabilitated as a result of proceedings under Chapter XI of the Bankruptcy Act, appeals from a ruling of Bankruptcy Judge Schwartzberg, which was affirmed by Judge Cooper in the District Court for the Southern District of New York, 1 B.R. 512. The effect of the decision was to allow the Government to collect post-petition interest and pre- and post-petition...

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