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IN RE NEWBURY CAFE, INC.

No. 87-1964.

841 F.2d 20 (1988)

In re NEWBURY CAFE, INC., d/b/a 29 Newbury, Debtor. COMMONWEALTH OF MASSACHUSETTS, Plaintiff, Appellant, v. NEWBURY CAFE, INC., Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided March 8, 1988.

Attorney(s) appearing for the Case

Leonard M. Goldberg, Massachusetts Dept. of Revenue, Legal Bureau, with whom Michael E. Porter, Chief, Legal Bureau, James M. Shannon, Atty. Gen., and Jane S. Schacter, Asst. Atty. Gen., Boston, Mass., were on brief, for plaintiff, appellant.

Christopher W. Parker with whom Hinckley, Allen, Snyder & Comen, Boston, Mass., was on brief, for defendant, appellee.

Before COFFIN, Circuit Judge, ALDRICH, Senior Circuit Judge, and PETTINE, Senior District Judge.

BAILEY ALDRICH, Senior Circuit Judge.

In this case we are asked to decide whether a so-called oversecured taxing authority may recover from a bankrupt's estate interest on its debt accruing during the bankruptcy proceedings. Plaintiff Massachusetts Department of Revenue ("DOR") holds a statutory lien, Mass.G.L. c. 62C § 50, on the property of debtor Newbury Cafe, Inc. ("Newbury"). The value of the property subject to the lien exceeds the sum of the principal...

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