Wayne United Gas Co. v. Owens-Illinois Glass Co. - 300 U.S. 131 (1937)
U.S. Supreme Court
Wayne United Gas Co. v. Owens-Illinois Glass Co., 300 U.S. 131 (1937)
Wayne United Gas Co. v. Owens-Illinois Glass Co.
Argued January 7, 8, 1937
Decided February 1, 1937
300 U.S. 131
1. A corporation involved in foreclosure and liquidation proceedings in a state court, in which a sale of all its property had been ordered, applied to the federal court before the sale was consummated for a reorganization under § 77B of the Bankruptcy Act. Creditors who had participated in the state case secured an order of the federal court dismissing the petition for reorganization, and, while the reviewability of the order was before this Court by petition for certiorari, they went forward with the proceedings in the state court and obtained a confirmed sale and
conveyance of the assets to their nominee. Held that they had not thereby acquired a status precluding further examination of the petition for reorganization in the federal court, and that a motion to dismiss the petition for certiorari as moot must be overruled. P. 300 U. S. 134.
2. A court of bankruptcy has no terms, but sits continuously. P. 300 U. S. 135.
3. The rule denying power to a court of equity to vacate a decree after expiration of the term in which it was entered is therefore inapplicable to a court of bankruptcy. Id.
4. A court of bankruptcy, in a proceeding under § 77B of the Bankruptcy Act, has power, in the exercise of sound discretion, to reopen an order dismissing the petition for reorganization, notwithstanding that the time allowed for appeal from the order has expired. P. 300 U. S. 136.
5. The bankruptcy court, in the exercise of a sound discretion, if no intervening rights will be prejudiced by its action, may grant a rehearing upon application diligently made, and rehear the case upon the merits, and even though it reaffirm its former action and refuse to enter a decree different from the original one, the order entered upon rehearing is appealable, and the time for appeal runs from its entry. P. 300 U. S. 137.
84 F.2d 965 reversed.
Certiorari, 299 U.S. 528, to review the dismissal of an appeal from a decree of the district court entered on rehearing and dismissing, for the second time, a petition for reorganization under § 77B of the Bankruptcy Act.