Summary

Wiley Blount Rutledge Duggan v. Sansberry National Aircraft Corporation…

If the reorganization forum lacked the power to stay the bankruptcy proceeding and thereby to prevent a collateral inquiry into its own jurisdiction, this policy of Congress would be frustrated; for instead of one court's having 'exclusive jurisdiction of the debtor and its property, wherever located,' [22] there would be two courts each with a claim to jurisdiction and each denying the other's jurisdiction. We may not construe the Bankruptcy Act as permitting such a state of affairs.
Source: Wikisource

Wiley Blount Rutledge Duggan v. Sansberry National Aircraft Corporation…

The jurisdiction of both the bankruptcy forum and the reorganization forum is derived from and is limited by the Bankruptcy Act, enacted in accordance with the congressional power 'to establish * * * uniform Laws on the subject of Bankruptcies throughout the United States.' Constitution, Article 1, § 8. It was within the power of Congress to provide that a bankruptcy court could not permit an attack, even on the usual grounds, to be made upon proceedings initiated in a reorganization court.
Source: Wikisource

Wiley Blount Rutledge Duggan v. Sansberry National Aircraft Corporation…

In as much as the interested parties thus had an opportunity in the reorganization proceeding to dispute the allegations of National's petition that a parent-subsidiary relationship existed between it and Christopher and by doing so to have that issue determined on the facts, we think it plain that Congress intended that the same issue should not be tried collaterally in the bankruptcy proceeding.
Source: Wikisource

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