In Matter of Palfy

ORDER

KRUPANSKY, District Judge.

This proceeding has been transmitted to the District Court by the Bankruptcy Referee for a hearing before a jury at the bankrupt’s request and as authorized by § 17a(2) and § 17e(5) of the Bankruptcy Act of 1898, to determine the non-dischargeability of certain debts.

The Referee’s transmittal was in keeping with the policy of the Judicial Conference of the United States discouraging Referees in Bankruptcy from conducting jury trials. See Report of the Proceedings of the Judicial Conference of the United States, March 1960, at page 22.

The instant case presents…