Document: 369 U.S. 38 82 S.Ct. 537 7 L.Ed.2d 557 Hattiebelle O. SIMONSON, Trustee in Bankruptcy, etc., et al., Petitioners,v.R. C. GRANQUIST, District Director of Internal Revenue, al. No. 83. Argued Jan. 18, 1962. Decided March 5, Donald A. Schmechel, Seattle, Wash., and Fred Granata, Portland, Or., for petitioners. Richard J. Medalie, Washington, D.C., respondents. Mr. Justice BLACK delivered the opinion Court. 1 These two cases, consolidated argument here, involve controversies between United States bankruptcy trustees concerning right Government to recover federal tax penalties against estate a bankrupt.1 Because constituted perfected liens on bankrupt,2 Court Appeals Ninth Circuit, following one its own prior decisions which subsequently had been supported by both Sixth Tenth Circuits,3 sustained judgments holding penalty claims allowable. 9 Cir., 287 F.2d 489, 491. Since Fourth Fifth Circuits have held contrary,4 we granted certiorari resolve conflict. 366 943, 81 1673, 6 854. 2 Two provisions Bankruptcy Act, §§ 57, sub. j 67, b, are asserted particular relevance question. Section provides: 3 'Debts owing or any State subdivision thereof as forfeiture shall not be allowed, except amount pecuniary loss act, transaction, proceeding out arose * *.'5 b provides, however: 4 '(S)tatutory taxes debts may valid trustee, even though arising within four months filing petition initiating under this Act him. *'6 5 Despite fact that language § broadly prohibits allowance without regard whether such secured unsecured, argues section should interpreted apply unsecured only claims, penalties, allowed b. Its starts from primarily provides way gather unencumbered assets an insolvent debtor distribution among his creditors, but, containing some applicable generally leaves those creditors mortgages free enforce their directly property secured. From section-by-section analysis reasons 'claims' referred governs 'Proof claims,' but fund created assets, with deals. On basis contends j, being part must read barring yet ripened into lien so become charge upon bankrupt's property. We think, however, is itself more dependable guide meaning than general structure Act. Unquestionably broad enough bar all not, think was designed do precisely that. For it plainly manifests congressional purpose kind bankrupt based 'pecuniary' loss. So understood, section, has since enactment 1898, keeping aim provide conservation estates insolvents end there equitable consistent type involved. Moreover, prohibition wholly policy themselves. Tax imposed at least punitive measures persons who guilty default wrong.7 Enforcement bankrupts, would serve punish delinquent taxpayers, rather entirely innocent creditors. When turn find nothing indicates require suffer because inflicted himself. Indeed, single word regarding plain merely prevent certain liens, including statutory 'arising (bankruptcy) petition,' set aside declared invalid 60 preferential.8 Thus expressly declares take precedence over 'provisions contrary *.' cannot therefore showing make allowable special specific makes them allowable.9 8 The argues, legislative history sections supports when they liens. Without discussing varied arguments effect detail, cited no conclusion.10 Nor inference can drawn failure Congress amend although courts liened allowable, others opposite.11 It true long absolute priority due debtors accords preferred position. But places category quite different ordinary debts, favored bankruptcy, character means changed calling lien. 10 Reversed. 11 FRANKFURTER, whom HARLAN joins, dissenting. 12 Of course agrees important ensure I also agree U.S.C. 93, U.S.C.A. denying estate, reflects disadvantaging wrongs bankrupt. If were hold exclusive field problem. As is, if countervailing matter historic law, neither discarded nor disregarded giving proper setting resulting scope. 13 In sharp distinction always Secured vote creditors' meetings, 56, 92, e, extent these exceed value security. Fully counted determining total number order ascertain required initiate involuntary 59, 95, e. Liens unaffected discharge 17, e.g., Prebyl v. Prudential Ins. Co., 98 199; see Collier, 17.29 (14th ed. 1961). 14 Sections 64, 65, 104, 105, 107 establish three classes debts: lien, given others. Those having security satisfied pro rata basis, 65. priority, listed paid full specified before dividends other claimants. Liens, d statute enacted 30 Stat. 544, 564, statute—they Consequently entitled 64. City Richmond Bird, 249 174, 39 186, 63 L.Ed. 543. This omitted 1938 revision wording permitted inferences negative implication disallowed otherwise invalidated substance provision thought preserved sections—not disapproval policy. S.Rep. 1916, 75th Cong., 3d Sess. 17 (1938); supra, 67.20. remain immune displaced Act's priorities Goggin California Labor Div., 336 118, 126—127, 69 469, 473, 474, 93 543, A limited exception immunity made c, invalidation subordination carefully circumscribed, basic remains. 67.20(3)—67.20(7). 15 thus treated outside equal treatment bankruptcy. 57.07. lienor does simply first priority; he 'a enforcement independent bankruptcy,' id., 64.02, 2061. deals Id., 60.01. Lienholders need essentially proceedings. court below j; case, Simonson Granquist, another point reach disposition here. Granquist Int.Rev.Code 1954, 6321, 26 6321; Harris States, 1939, 3670, 3670. re Knox-Powell-Stockton Co. (C.A.9th Cir.), 100 979; Commonwealth Kentucky Farmers Bank (C.A.6th 139 266; Mighell (C.A.10th 273 682, 77 A.L.R.2d 1119. Harrington (C.A.4th 269 719; Phillips (C.A.5th 267 374. 561, amended, j. 52 876, 107, See, Childs, 266 304, 307, 45 110, 299. 562, 96, 96. See Analysis H.R. 12889, 74th 2d 211, note 1; 183, particularly 12. Cf. Gardner New Jersey, 329 565, 580—581, 67 467, 475, 91 504. Indeed what little might well taken indicate intent not. Thus, minority report Torrey Bill eventually became 1898 stated objection 'penalties forfeitures, merged judgment debtor's bill treats worthless forbids payment.' H.R.R.ep. 1674, 52d 1st Sess., pt. 2, pp. 13—14. Compare, 979, Bank, 266, Phillips, 374, Burch, 89 F.Supp. 249. 1960 passed applying 'whether lien,' vetoed President. 106 Cong.Rec. 19168.

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