Powell

On a former appeal, Powell v. Wumkes, 9 Cir., 142 F.2d 4 , we affirmed a decision of the bankruptcy court setting aside a referee’s valuation order and recommitting the matter for a further hearing. On the second hearing the referee fixed the value of the debtor’s property at $5,575. 1 The secured creditor (appellee) again sought review, this time before Judge McCormick. On the review the judge set aside the referee’s valuation and recommitted the case once more. The debtor appeals.

The judge was of opinion that the referee had erred prejudicially in failing to consider evidence of sales of comparable property, as well as in rejecting evidence of a cash offer for the debtor’s property tendered by a witness for the creditor during the course of the hearing. It was thought that the unfair aspect of the referee’s determination was further manifested by affidavits received and considered on review.

We think the referee was right in ■rejecting evidence of cash offers. The purpose of a revaluation proceeding under the first proviso of § 75, sub. s(3) of the Bankruptcy Act, 11 U.S.C.A. § 203 , sub. s(3), is not to effect a sale, but to determine the fair value at which the debtor may…