SHACKELFORD MILLER, Jr., Chief Judge. Reorganization proceedings involving the debtors, Inland Gas Corporation, Kentucky Fuel Gas Corporation and American Fuel Power Company, were started in the United States District Court for the Eastern District of Kentucky in the fall of 1935. A plan which embraced reorganization of the three debtors was finally approved and confirmed by the District Court on June 2, 1958, but did not become effective until the conclusion of litigation by denial of certiorari by the Supreme Court on June 6, 1960. During this period of time numerous appeals have been considered and passed upon by this Court, starting with In re Inland Gas Corporation, 91 F.2d 113, C.A.6th, June 28, 1937, and continuing through In Re Inland Gas Corporation, 275 F.2d 509, C.A.6th, January 27, 1960, certiorari denied, 363 U.S. 813, 80 S.Ct. 1246, 4 L.Ed.2d 1154. As pointed out in the dissenting opinion in the last cited case, 275 F.2d 509, at p. 515, this long period of time consumed in bringing these proceedings to a conclusion was due largely to the fact that the operations by the Trustee for the Inland Gas Corporation were most successful with the most unusual result that proposed plans of reorganization had to be amended or superseded by later plans so as to properly reflect for the benefit of creditors the materially improving financial and economic condition of the debtor under the management of the Trustee. Reference is made in the opinion in 275 F.2d 509, to the numerous other opinions of this Court rendered in these proceedings.
See Jarndyce v. Jarndyce, reported in "Bleak House" by Charles Dickens. The controversy presented by the present appeals evolves from an equity receivership instituted in late 1930, followed by proceedings under section 77B of the Bankruptcy Act and finally by corporate reorganization proceedings under Chapter X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq. The two separate appeals which bring the case to us again at this late date are from an order entered by the United States District Court confirming a plan of reorganization. For an understanding of the history and background of the case in all phases, we refer to our previous decisions, as follows: In re Inland Gas Corporation [Columbia Gas v. Lockhart] 6 Cir., 1937, 91 F.2d 113; Hamilton Gas Co. v. Inland Gas Corporation (Piney Oil Gas v. Inland Gas Corp.), 6 Cir., 1939, 102 F.2d 131; In re American Fuel Power Co., 6 Cir., 1941, 122 F.2d 223; Columbia Gas Electric Corporation v. United States, 6 Cir., 1945, 151 F.2d 461; Columbia Gas Electric Corporation v. United States, 6 Cir., 1946, 153 F.2d 101; In re Inland Gas Corporation, 6 Cir., 1951, 187 F.2d 813; In re Inland Gas Corporation, 6 Cir., 1953, 208 F.2d 13; In re Inland Gas Corporation, 6 Cir., 1954, 211 F.2d 381; In re Inland Gas Corporation, 6 Cir., 1954, 217 F.2d 207; In re Inland Gas Corporation, 6 Cir., 1957, 241 F.2d 374; In re Inland Gas Corporation, 6 Cir., 1959, 262 F.2d 510. The first two above-listed opinions have no relevancy now. Our opinion reported at 1945, 151 F.2d 461, discloses the historical background; and our last two opinions, entitled "In re Inland Gas Corporation", reported respectively in 1957, 241 F.2d 374 and in 1959, 262 F.2d 510 relate to, and we think control, the iss
Articles I, II, III and IV of the approved Plan contain comprehensive statements of the complicated and apparently hopeless financial condition of each of these companies at the beginning of the proceedings. The innumerable problems which have given rise to the prolonged litigation which has ensued are disclosed in the following opinions of the Appellate court: In re Inland Gas Corporation et al. (Columbia Gas & Electric Corp. v. Lockhart et al.), 6 Cir., 1937, 91 F.2d 113; Hamilton Gas Co. v. Inland Gas Corp. (Piney Oil & Gas Co. v. Inland Gas Corp.), 6 Cir., 1939, 102 F.2d 131; In re American Fuel & Power Co., 6 Cir., 1941, 122 F.2d 223; Columbia Gas & Electric Corp. v. United States, 6 Cir., 1945, 151 F.2d 461; Columbia Gas & Electric Corp. v. United States, 6 Cir., 1946, 153 F.2d 101; In re Inland Gas Corporation, 6 Cir., 1951, 187 F.2d 813; In re Inland Gas Corporation, 6 Cir., 1953, 208 F.2d 13; In re Inland Gas Corporation, 6 Cir., 1954, 211 F.2d 381; In re Inland Gas Corporation, 6 Cir., 1954, 217 F.2d 207; In re Inland Gas Corporation, 6 Cir., 1957, 241 F.2d 374; In re Inland Gas Corporation, 6 Cir., 1959, 262 F.2d 510, and In the Matter of Inland Gas Corporation et al., 6 Cir., 1960, 275 F.2d 509. If we make allowance for the time during which the progress of reorganization efforts were necessarily suspended, awaiting determinatio
11 U.S.C.A. § 93, sub. i. Of course, subrogation will be denied to the mere volunteer, In re Green River Jockey Club, D.C., 5 F.2d 259; In the Matter of Inland Gas Corp., 6 Cir., 91 F.2d 113, and it will be denied to one who engineers a tax sale to buy the bankrupt's worthless equity for the sole purpose of claiming the government's priority distribution. In the Matter of Gracey, D.C., 241 F. 981. On the other hand, there is a respectable split of authority on the question of whether a purchaser at a tax sale may be subrogated to the priority of the taxing unit.
101 F. Supp. 555 (S.D.Cal. 1951). Of course, subrogation will be denied to the mere volunteer, In re Green River Jockey Club, D.C., 5 F.2d 259; In the Matter of Inland Gas Corp., 6 Cir., 91 F.2d 113, and it will be denied to one who engineers a tax sale to buy the bankrupt's worthless equity for the sole purpose of claiming the government's priority distribution. In the Matter of Gracey, D.C., 241 F. 981. On the other hand, there is a respectable split of authority on the question of whether a purchaser at a tax sale may be subrogated to the priority of the taxing unit.