Diamond Laundry Corp. v. California Employment Stabilization Commission

These are consolidated appeals from judgments affirming orders of a referee in bankruptcy — (1) an appeal by the debtor, Diamond Laundry Corporation, from a judgment affirming an order allowing two claims of appellee, California Employment Stabilization Commission, 1 against the debtor and overruling its objections to the claims; (2) an appeal by the receiver, Harry Ashton, from a judgment affirming an order dismissing his objections to the claims; and (3) an appeal by the debtor and the receiver from a judgment affirming an order striking their additional and supplemental objections to the claims.

First. On June 30, 1942, an involuntary petition in bankruptcy was filed against the debtor, the proceeding thus commenced was referred to a referee, and Ashton was appointed receiver of the debtor’s property. Proofs of two claims against the debtor were filed by appellee on August 25, 1942, and December 30, 1942, respectively. An arrangement was proposed by the debtor under chapter 11 of the Bankruptcy Act, 11 U.S.C.A. §§ 701-799 , on March 12, 1943. An amendment to the proposed arrangement was filed 011 July 6, 1943. Objections to the claims were filed by the debtor on August 3,…