Continental Illinois Nat. Bank & Trust Co. v. Chicago, R. I. & P. Ry. Co.

EVANS, Circuit Judge.

These appeals (allowed both by the District Court and this court) are from an order of the District Court enjoining appellants from selling collateral which appellee, C. E. I. & P. Ry. Co., had pledged as security for loans made to it by appellants. All controverted issues concern the validity and propriety of the order restraining the sale of the pledged collateral and are directed to:

First, the District Court’s jurisdiction as a court of bankruptcy, before the 1933 amendment, to issue such an injunction;

Second, its power to so enjoin under (new) section 77 of the…