Case ID: f2d_7/html/0512-02.html
Source: Caselaw Access Project
Author: {"author": "BONDY, District Judge.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In re GENERAL RESEARCH LABORATORIES, Inc.
    District Court, S. D. New York.
    January 7, 1925.
    Bankruptcy <©=»!13 — Costs and damages on dismissal of petition for receiver must be Jiaid by obligors on bond.
    Under Bankruptcy Act, § 3, subd. e (Comp. St. § 9587), providing that, on dismissal of a petition for appointment of a receiver for an alleged bankrupt, counsel fees, costs, expenses, and damages shall be fixed and allowed by the court and paid by the obligors in the bond filed by petitioner, the court is without power to order such allowance paid by any one else.
    Iu Bankruptcy. Iu the matter of General Research Laboratories, Inc., alleged bankrupt. On motion for allowance of costs and damages on dismissal of petition for receiver. Granted.
    Sbaine & Weinrib, of New York City, for bankrupt.
    Joseph S. Johnston, of New York City, for petitioning creditors and receiver.
    James P. Callender, of New York City, for receiver.
    Budd & Coffey, of New York City, for petitioning creditor Stern.
    Alexander T. Hussey, of New York City, for petitioning creditor Van Bokkelen.
    Lesser Brothers, of New York City, for petitioning creditor Rider-Erieson Engine Corporation.
   BONDY, District Judge.

Section 3, subd. e, of the Bankruptcy Law (Comp. St. § 9587), provides that, if a petition for the appointment of a receiver is dismissed, the costs, expenses, and damages should be fixed and allowed by the court and paid by the obligors in tbe bond filed on the application for the appointment of a receiver. The bankruptcy court, therefore, will not order them paid by any one else.

The motion, therefore, is granted, without prejudice, however, to any right which any party to this proceeding may have to enforce contribution at law or in equity.