GOLDBURN, Bankruptcy Judge
An automatic stay was lifted to allow an unfair labor practice case to proceed against a debtor where the debtor failed to show that lifting of the stay would delay estate administration to the point of impending irreparable injury.
After the debtor had filed a petition for reorganization under Chapter XI of the Bankruptcy Act, the National Labor Relations Board (NLRB) filed complaints alleging that the debtor had violated the National Labor Relations Act (NLRA) by unilaterally making changes in the working conditions of its employees. The NLRB then filed a complaint in the bankruptcy court to lift the stay to enable it to proceed with the complaints. The debtor requested that the stay be retained.
The court first noted that Section 314 of the Bankruptcy Act does not constitute a waiver of governmental immunity from injunctive restraints. In addition, however, the court has a primary duty to determine if lifting an injunction will irreparably injure, delay or threaten the debtor's estate. The court cited the case of In re Airport Iron and Metal, Inc., Bank. L. Dec. ¶ 65,415, where it was held that a debtor was not entitled to the injunctive relief of Bankruptcy Rule 11-44 to stay proceedings before the NLRB concerning unfair labor practices as long as the administration of the debtor's estate was not being embarrassed or delayed to the point of threatened or impending irreparable injury.
Here, noted the court, the debtor had not shown that lifting the automatic stay would cause delay to the point of irreparable injury. Thus, the court concluded that the stay should be lifted. See Sec. 314 at ¶ 3321 and Sec. 362 at ¶ 8602, and Bankruptcy Rule 11-44 at ¶ 20,744.