In re Pollard Bros.

In this Chapter X proceeding under the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., the United States filed a claim for taxes and for interest thereon to the date of payment and for penalties. The Referee allowed the claim with interest thereon and penalties to the date of bankruptcy and disallowed interest thereafter and the penalties included in the claim.

The same rule applies to tax claims under Chapter X proceedings as applies in general bankruptcy proceedings. United States v. Edens, 4 Cir., 189 F.2d 876 , affirmed per curiam 342 U.S. 912 , 72 S.Ct. 357 , 96 L.Ed. 682 .

The United States relies principally upon an opinion of this court filed March 31, 1950, in the Matter of Ridgecrest Development Company, D.C.S.D.Cal. 1950, 129 F.Supp. 708 , wherein I, as judge of this court, allowed interest on the lien claim of taxes to the United States subsequent to bankruptcy. At that time City of New York v. Saper, 336 U.S. 328 , 69 S.Ct. 554 , 93 L.Ed. 710 , was before me. It holds that interest on the tax claims terminates at the date of bankruptcy but no where in the opinion of the Supreme Court or of the lower courts does it appear that the claim for taxes had proceeded to the…