Mason v. Banta Carbona Irr. Dist.

A petition for the composition of its indebtedness as a local taxing agency under the California Irrigation District Act of 1897 (Cal.Stat.1897, p. 254), and amendatory acts, was filed by appellee under the *50 terms of the Bankruptcy Act, 11 U.S.C.A. §§ 401-404 . A plan for composition was confirmed by the district court sitting in bankruptcy, its interlocutory decree affirmed by this court, McDonald v. Banta Carbona Irr. Dist., 9 Cir., 1941, 123 F.2d 968 , and a writ of certiorari denied by the Supreme Court, 1942, 316 U.S. 668 , 62 S.Ct. 1034 , 86 L.Ed. 1743 . Subsequently, the district court entered its final decree in the proceedings, and the instant matter is an appeal therefrom taken by a bondholder-creditor of appellee irrigation district.

Appellant argues five propositions.

First Proposition. The final decree provides that outstanding bonds must be presented to the court registrar, for retiring and refinancing from funds held by him, within twelve months from the date of the decree or from the date the decree becomes final should an appeal be taken, that outstanding obligations not presented within such time will be barred from participating in the plan of composition…