In Re Pedisich

The debtor in this proceeding, Joseph K. Pedisich commenced a real property arrangement under Chapter XII of the Bankruptcy Act on July 11, 1947, 11 U.S.C.A. § 801 et seq. On May 14, 1951 the district court entered an order disallowing any compensation to the attorneys for the debtor and disallowing any reimbursement to these attorneys for costs not incurred or expended for the benefit of the estate. The attorneys for the debtor have appealed from that order. Louis Hozz and Ettie Hozz, doing business as Petaluma Milling Co., are creditors of the above named debtor and as such have moved in this court to dismiss the appeal.

The first ground urged for dismissal is that appellants did not obtain permission to appeal to this court as required by Section 498 of the Bankruptcy Act, 11 U.S.C.A. § 898 . While apparently there are no cases construing this section, Section 250 of the Bankruptcy Act, 11 U.S.C.A. § 650 , which employs identical language has been construed to require that appeals of this character be taken only upon allowance of the court of appeals, Reconstruction Finance Corp. v. Prudence Securities Advisory Group, et al., 311 U.S. 579, 61 S.Ct. 331 , 85 L.Ed. 364 . Though…