In re Kimble

Petitioner American Trust Company seeks reimbursement under Section 64, sub. a(3) of the Bankruptcy Act ( 11 U.S.C.A. § 104 , sub. a(3)) for its services rendered in blocking the bankrupt’s discharge.

Petitioner, through its own attorneys, established to the satisfaction of the Referee in Bankruptcy, that the bankrupt had perpetrated a fraud in connection with certain loans made to him by petitioner. Under these circumstances the bankrupt was not entitled to his discharge and the Referee so held.

In 1938, Section 64, sub. a(3) of the Bankruptcy Act was amended to read as follows:

Petitioner contends that under the language of this section, the Court is authorized to award costs and attorney fees to it for the role it played in resisting the discharge of bankrupt. Although no case has construed the 1938 amendment under circumstances similar to those before the Court, text writers on the subject have stated views which are in accord with the position taken by petitioner. 6 Remington on Bankruptcy (5th Ed.) Section 2725, 3 Collier on Bankruptcy, See. 64,303 (14th Ed.).

A subsidiary point raised in the petition is the amount of the attorney fees *905 to be awarded. Petitioner asks…