The opinion of the court was delivered by: COOPER
This is a review of the decision of the successor referee in bankruptcy, denying the application of George M. Haight as Receiver of the Salt Springs National Bank of Syracuse for an order directing the reconsideration of the claims of various creditors whose claims had been allowed herein by the deceased predecessor referee.
The ground of the decision under review was that the order of the predecessor Referee is res adjudicata and binding on the successor Referee, there having been no review of such order.
The bankrupt filed its voluntary petition on August 28, 1936, was adjudicated the same day and the order of reference was made on August 31, 1936.
A receiver was appointed August 29, 1936, and a trustee was elected February 15, 1937.
The claims of the creditors here sought to be reviewed were allowed at said first meeting and voted for the successful candidate for trustee.
Counsel for the receiver of the Salt Springs Bank objected to the allowance of these claims and to their right to vote for the trustee.
On April 14, 1938, the assets of the bankrupt were sold to one of the officers and directors of the bankrupt for approximately $10,000. The sale was not confirmed until November, 1939, the purchaser meantime remaining in possession, the purchased property being used by him.
The purchase price was then paid and the trustee made his final accounting and notice was given of a final meeting of creditors to approve said account, declare a dividend, make allowances, etc.
The matter was stayed by order of the Court until the hearing of the application of the bank receiver for a review of the election of the trustee based upon the invalidity of the votes of creditors whose claims the bank receiver contended should not have been allowed or were allowed in excess of the proper amount. This review was denied. Thereupon the bank receiver moved before the Referee for the reconsideration of the claims allowed and upon his denial of such motion, brought this review.
Ten claims were allowed for a total sum of $102,442.76 besides two claims of the State of New York for a total of $175.
The bank receiver asks re-consideration of all the claims allowed except those represented by his attorneys, the two state tax claims and the claim of the Syracuse Lighting Company in the sum of $39.14.
The claims represented by the attorneys for the bank receiver and other than the receiver's claim are two:
Acme Pattern and Machine Company Inc., $281.88.
T. Otto Lumber Company, $7.50.
The bank receiver's claim is $18,275,87.
It thus appears that if all the claims whose reconsideration is sought can be re-considered and disallowed, the bank receiver will receive nearly all the assets of the estate on the distribution thereof.
But even so, if these claims are not properly allowable, they should be disallowed.
The creditors opposing reconsideration, hereinafter called opposing creditors, raise ...