In re La Belle

The review in this case arises from the Referee’s Order denying a discharge in bankruptcy.

In his Order Denying Discharge the Referee found:

In his “Certificate On Review Of Order Denying Discharge * * * ”, the Referee certified the question presented to be:

The transcript of proceedings before the Referee shows that this question and the bankrupt’s alleged failure to keep such books of account comprised the controversy before the Referee. The answer to the Referee’s question of law, which he answered affirmatively, must likewise be answered affirmatively here.

Title 11 U.S.C.A. § 32 , specifies when discharges in bankruptcy shall be granted, and Subdivision c states one of the grounds for denial to be:

A pertinent comment in the case law declares :

Particularly apropos of the facts of the case before the Court is a comment of the Appellate Court of the Seventh Circuit:

Other decisions are to similar effect :

It thus appears that one of the Court’s duties on reviewing the Referee’s action would necessarily include studying the books. The exceedingly informal proceedings before the Referee in this case did not include introduction of the books into evidence, nor were they…