Case Name: In re KLETCHKA
Court: United States District Court for the Southern District of New York
Jurisdiction: United States
Decision Date: 1899-02-08
Citations: 92 F. 901
Docket Number: 
Parties: In re KLETCHKA.
Judges: 
Reporter: Federal Reporter
Volume: 92
Pages: 901–901

Head Matter:
In re KLETCHKA.
(District Court, S. D. New York.
February 8, 1899.)
Bankruptcy — Stay—Suppdemkntary Proceedings.
Where proceedings supplementary to execution against the bankrupt, in a state court, begun within four months before the commencement of proceedings in bankruptcy, are pending at the time of the adjudication therein, the court of bankruptcy, by injunction, will stay all further proceedings in the action ixi the state court.
In Bankruptcy. On motion to dissolve injunction.
J. Brownson Ker, for creditor.
Edward J. MeGean, for bankrupt.

Opinion:
BROWN, District Judge.
Proceedings supplementary to execution in the state court should be stayed after an adjudication in bankruptcy, because otherwise the property of the bankrupt, which ought to be distributed equally among creditors through the trustee, might be discovered and turned over to the receiver in supplementary proceedings and thereby sold and lost to creditors before the trustee was appointed, flection 67 provides that any lien obtained by such proceedings within four month® shall be dissolved by the adjudication. It is the duty of this court to enforce that provision; and subdivision 15 of section 2 provides that this court may make "such orders as are necessary for that purpose." A stay of the proceeding® is not only an appropriate mode of doing so, but absolutely necessary for that purpose. See Johnson v. Rogers, 15 N. B. R. 1, 10, 13 Fed. Cas. 794, 797; In re Pitts, 9 Fed. 542; Becker v. Torrance, 31 N. Y. 631; Bank v. Shuler, 153 N. Y. 172, 47 N. E. 262; Gluey v. Tanner, 10 Fed. 101, 113, affirmed in 18 Fed. 636; Kitchen v. Lowery, 127 N. Y. 53, 27 N. E. 357.