Anderson-Cottonwood Irr. Dist. v. Mason

Appeal is taken from an order of the court below staying a decree made in a proceeding brought by appellant which sought confirmation of a plan of composition with its creditors under Chapter IX of the Chandler Act. 11 U.S.C.A. § 401 et seq.

Appellant filed in the court below a plan of composition. The court below entered a decree approving the plan of composition on July 7, 1941. Paragraph (b) of the decree provided that $24,799.14 which had been paid into Court should be disbursed for the purpose of retiring old obligations of appellant “which may be presented to the Registrar for that purpose within the period of twelve (12) months from the date hereof”; and that all such bonds which were not so presented to the Registrar within the 12 months should “be forever barred from participating in the plan of composition or in the funds held in the registry of this Court”. Paragraph (c) of the decree provided that all old bonds of appellant “are hereby cancelled, annulled and held for naught as enforceable obligations of the petitioning district, except as herein provided”.

Prior to the entry of the decree, appellee objected to the form thereof on the ground “that it provides for a…