In the Matter of Wonderbowl, Inc., a California Corporation, Debtor. Caruso Enterprises, Inc. v. A. J. Bumb, Trustee

This appeal arises out of a proceeding under Chapter X of the Bankruptcy Act ( 11 U.S.C. § 501 et seq.) for the reorganization of Wonderbowl, Inc., a California corporation.

The district court designated appellee, A. J. Bumb, as trustee for the debtor corporation, and referred the proceedings to a Referee in Bankruptcy.

The trustee applied for an order authorizing the sale of certain real property and leasehold interests owned by the corporation. The court directed the referee to hold a hearing on the application, as a special master.

Appellant, claiming certain security interests in the properties, appeared at the hearing and objected to the sale. In due course the referee-special master submitted two reports to the district court recommending approval of a sale of the properties free and clear of security interests, which would attach to the proceeds.

Appellant filed written objections to the referee-special master’s reports with the district court. The district judge set February 10, 1969, as the date for hearing on appellant’s objections. On that date the court continued the hearing sm sponte to February 24, 1969. On February 24, 1969, appellant asked for and was granted a…