In Re Burbank Corporation

Should a public utility be paid in full for service rendered prior to filing a petition, as a condition to rendering further service, where a debtor has filed a petition under the provisions of Chap. XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq., and later is adjudicated a bankrupt?

The Burbank Corporation, a corporation hereinafter called the debtor, filed and had approved its petition under Chapter XI of the Bankruptcy Act, Sec. 322, on November 19, 1941. Counsel advise they have been unable to find an authority in point in the higher courts. The debtor filed ail amended arrangement on January 8, 1942. On January 21, 1942 the referee appointed a creditors’ committee. On May 14, 1942 a hearing was held before the referee, Hubert F. Laugharn, to determine whether the debtor should be adjudicated a bankrupt or the proceedings under Chapter XI of the Bankruptcy Act be dismissed, at which time the debtor had no arrangement to offer his creditors and, without objection on the part of the debtor or any of the creditors, the Burbank Corporation, a corporation, petitioner, was adjudicated a bankrupt. The same trustee whose nomination was approved by order dated January 21, 1942,…