Standard Steel Works v. American Pipe & Steel Corp.

On January 31, 1938, the appellant filed with the District Court its Petition for Reorganization under Section 77B of the Bankruptcy Act, Act of June 7, 1934, 48 Stat. 911 , 912, as amended, 11 U.S.C.A. § 207 , and the court on the same date entered its order approving the petition and continuing the appellant in possession of its properties. On February 10, 1938, the appellant filed its schedule of assets and liabilities, and listed the appellee as an unsecured creditor in the amount of $1,566.56. On February 21, 1938, the appellant filed a petition for an order to show cause why an attachment which appellee had previously levied on the bank account of appellant should not be dissolved. On the same day, February 21, 1938, the District Court made its order requiring all persons having claims against the appellant to file the same, duly verified, on- or before March 15, 1938. The appellee never filed any verified claim as provided by that court order, although it is conceded that it received the proper notice.

On March 10, 1938, the appellee and other creditors filed a petition for liquidation, which petition was denied by the .court. The petition for dissolution of the attachment…