109 F.2d 418 | 5th Cir. | 1940
This appeal presents an issue as to the right of a conciliation commissioner to deduct from the rental paid into his hands, under the provisions of paragraph (2) of subsection s of section 75 of the Bankruptcy Act, 11 U.S.C.A. § 203, sub. s(2), the following fees; $35 for himself; $10 for the referee; $3 each for three ap-praisérs; total $54. The facts are in the record upon a stipulation of the parties.
The debtor, having failed to secure the acceptance of his offer of composition by a majority of his creditors, amended his petition as provided in said subsection s, and was duly adjudged a bankrupt. The appraisers valued the. debtor’s farm at $5,-229.02. On October 3, 1936, the conciliation commissioner fixed $375 as a reasonable annual rental therefor, payable on October 15th of each year during the pendency of this proceeding.
The rent was duly paid for the years 1936 and 1937, but was not paid when due in 1938. As a result, the appellant and one other creditor filed petitions to be permitted to foreclose their deeds ' of trust. These petitions were granted, thereby disposing of all of the debtor’s assets, except the 1936, 1937, and 1938 crops. In the meantime, the 1938 rental was paid by the debtor to the conciliation commissioner, from which the latter deducted the aforesaid fees. The balance of the 1938 rental, after deducting the $54, was paid to the appellant upon the condition that it would be applied, first, in payment of the 1938 taxes; second, to reduce the first mortgage of appellant. The district court upheld the deductions on the
The fees of the referee, appraisers, and conciliation commissioner should be charged against the bankrupt’s estate.
The judgment of the district court is reversed, and the cause remanded for further proceedings not inconsistent with this opinion.
Paragraph (2) of subsection s of section 75 of the Bankruptcy Act, 11 U. S.C.A. § 203, sub. s2.
Paragraph (4) of said subsection s, 11 U.S.C.A. § 203, sub. s, (4). See, also 11 U.S.C.A. §§ 68 and 76.