Magid

This appeal is from an order of the district court, sitting in bankruptcy in the matter of Hollywood Premiere, Bankrupt, approving an order of the referee directing appellants to pay over to the estate the sum of $406.21. Leave to appeal has heretofore been granted by this court.

Appellee, hereafter referred to as Ma-gid, was the assignee in a common law assignment for the benefit of Hollywood Premiere’s creditors. The assignment was made on June 28, 1952. On October 7 thereafter an involuntary petition in bankruptcy was filed and on October 27, 1952, Hollywood Premiere was adjudicated a bankrupt. One Lynch was thereupon elected trustee of the bankrupt estate and qualified as such.

In June of 1953 pursuant to 11 U.S.C.A. § 11 (21), Magid filed with the trustee his report and account as assignee, and the trustee petitioned the referee for a hearing to consider the account for approval or rejection. After the hearing (to which appellants were not a party) the referee surcharged Magid’s account with the sum of $846.22. In part this amount represented what the referee found were excessive payments by Magid to himself, to his attorney, and to an appraiser, for services rendered by…