Page:United States Statutes at Large Volume 60 Part 1.djvu/439

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PUBLIC LAWS-CH. 532 -JULY 1, 1946 Filing of answer. "At any time not less than tenr days prior to the time fixed for the hearing, any creditor of the petitioner affected by the plan may file an answer to the petition controverting any of the material allegations therein and setting up any objection he may have to the plan of com- position. The judge may continue the hearing from time to time if the percentage of creditors required herein for the confirmation of the plan shall not have accepted the plan in writing, or if for any reason satis- factory to the judge the hearing is not completed on the date fixed Decision on issues therefor. At the hearing, or a continuance thereof, the judge shall presented. decide the issues presented and unless the material allegations of the petition are sustained shall dismiss the proceeding. If, however, the material allegations of the petition are sustained, the judge shall class- ify the creditors according to the nature of their respective claims and Holders of claims, interest: Provided,however, That the holders of all claims, regardless lasses, of the manner in which they are evidenced, which are payable without preference out of funds derived from the same source or sources shall be of one class. The holders of claims for the payment of which specific property or revenues are pledged, or which are otherwise given prefer- ence as provided by law, shall accordingly constitute a separate class or classes of creditors. Reference of special "At the hearing or a continuance thereof the judge may refer any special issues of fact to a referee in bankruptcy or a special master for consideration, the taking of testimony, and a report upon such special issues of fact, if the judge finds that the condition of his docket is such that he cannot take such testimony without unduly delaying the dis- patch of other business pending in his court, and if it appears that such special issues are necessary to the determination of the case. Only under special circumstances shall references be made to a special master who is not a referee in bankruptcy. A general reference of the case to a master shall not be made, but the reference, if any, shall be only in the form of requests for findings of specific facts. Compensation for "The court may allow reasonable compensation for the services per- services of referee, etc. 1 1

formed by such referee in bankruptcy or special master, and the actual and necessary expenses incurred in connection with the proceeding, including compensation for services rendered and expenses incurred in obtaining the deposit of securities and the preparation of the plan, whether such work may have been done by the petitioner or by com- mittees or other representatives of creditors, and may allow reasonable compensation for the attorneys or agents of any of the foregoing: Restriction. Provided, however, That no fees, compensation, reimbursement, or other allowances for attorneys, agents, committees, or other repre- sentatives of creditors shall be assessed against the petitioner or paid from any revenues, property, or funds of the petitioner except in the manner and in such sums, if any as may be provided for in the plan Appeals from orders of composition. An appeal may be taken from any order making such determination or award to the United States circuit court of appeals for the circuit in which the proceeding under this chapter is pending, independently of other appeals which may be taken in the proceeding, and such appeal shall be heard summarily "Such compensation of referees in bankruptcy and special masters Ante, p. 326. shall not be governed by section 40 of this Act Dismissal of pro- "On thirty days' notice by any creditor to petitioner, the judge, if ceeding. he finds that the proceeding has not been prosecuted with reasonable diligence, or that it is unlikely that the plan will be accepted by said proportion of creditors, may dismiss the proceeding Stay ofsuits, etc. "(c) Upon entry of the order fixing the time for the hearing, or at any time thereafter, the judge may upon notice enjoin or stay, pending the determination of the matter, the commencement or con- tinuation of suits against the petitioner, or any officer or inhabitant 412 [60 STAT.