Goggin

Appellant, a receiver appointed pursuant to an arrangement confirmed in accordance with Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq., appeals from a denial of his petition to subordinate appel-lee’s claim against the debtor to the claims of the other unsecured creditors. Ap-pellee’s claim was originally allowed by the referee in March 1948, and in the succeeding month a petition to review the allowance was filed in the District Court. Meanwhile, a plan of arrangement was prepared under Chapter XI and a second amended plan was filed with the referee in July 1948. This amended plan was confirmed by the referee on July 30. The amended plan purported to reserve to the bankruptcy court the general jurisdiction which it would have had if the debtor had been adjudicated a bankrupt. Similarly, the plan purported to reserve to the receiver all the rights he would have had in the event he had been appointed trustee in bankruptcy.

On July 30, 1948 the receiver filed with the referee the petition to subordinate the claim of appellee. Said petition alleged that appellee had induced other creditors to extend credit to the debtor by knowingly giving false information concerning…