In re California Paving Co.

This is a review of an order of the Referee in Bankruptcy requiring the petitioners L. C. Smith and Hilltop Quarry, Inc. to surrender to California Paving Co., debt- or in arrangement proceedings, certain quarry leasehold interests and to render to the debtor an accounting. Petitioners assert that the Referee was without jurisdiction to hear the matter summarily, over their objection, and that, had his exercise of summary jurisdiction been proper, the order is not supported by the evidence. Thus this Court must- decide the jurisdictional question before considering the other grounds set forth in the petition for review. In reaching such decision the sequence of events, as disclosed by the record, is important.

*911 On May 8, 1947, the debtor California Paving Co., a partnership composed of William D. Smith and Angelo Bragato, filed a petition for an arrangement under Chapter XI of the Bankruptcy Act, 11 U.S. C.A. § 701 et seq., together with its Proposed Plan of Arrangement and schedule of assets. This plan was duly confirmed, the Referee’s Order of Confirmation providing that the debtor should remain in possession and that the Bankruptcy Court should retain jurisdiction until…