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92 F. 901

In re Kletchka

New York Southern District Court

Decided February 8, 1899.)

New York Southern District Court · decided 1899-02-08

<p>Bankruptcy — Stay—Suppdemkntary Proceedings.</p> <p>Where proceedings supplementary to execution against the bankrupt, in a state court, begun within four months before the commencement of proceedings in bankruptcy, are pending at the time of the adjudication therein, the court of bankruptcy, by injunction, will stay all further proceedings in the action ixi the state court.</p>

Cited by 5 later decisions (3 by the Supreme Court) — most recently August 1934

2 counsel of record

Relies on Ray v. Norseworthy · Factors' & Traders' Insurance v. Murphy · 7 E.H. Smith 163 - First National Bank v. . Shuler

Good law ✅— No negative treatment on recordhow we know

Decided 1899-02-08

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¶1Bankruptcy — Stay—Suppdemkntary Proceedings.

¶2Where proceedings supplementary to execution against the bankrupt, in a state court, begun within four months before the commencement of proceedings in bankruptcy, are pending at the time of the adjudication therein, the court of bankruptcy, by injunction, will stay all further proceedings in the action ixi the state court.

¶3In Bankruptcy. On motion to dissolve injunction.

¶4J. Brownson Ker, for creditor.

¶5Edward J. MeGean, for bankrupt.

¶6BROWN, District Judge.

¶7Proceedings supplementary to execution in the state court should be stayed after an adjudication in bankruptcy, because otherwise the property of the bankrupt, which ought to be distributed equally among creditors through the trustee, might be discovered and turned over to the receiver in supplementary proceedings and thereby sold and lost to creditors before the trustee was appointed, flection 67 provides that any lien obtained by such proceedings within four month® shall be dissolved by the adjudication. It is the duty of this court to enforce that provision; and subdivision 15 of section 2 provides that this court may make “such orders as are necessary for that purpose.” A stay of the proceeding® is not only an appropriate mode of doing so, but absolutely necessary for that purpose. See Johnson v. Rogers, 15 N. B. R. 1, 10, 13 Fed. Cas. 794, 797; In re Pitts, 9 Fed. 542; Becker v. Torrance, 31 N. Y. 631; Bank v. Shuler, 153 N. Y. 172, 47 N. E. 262; Gluey v. Tanner, 10 Fed. 101, 113, affirmed in 18 Fed. 636; Kitchen v. Lowery, 127 N. Y. 53, 27 N. E. 357.

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