Masaru Sumida v. Fusao Yumen

JAMES M. CARTER, Circuit Judge:

This case arises out of a dismissal of a Chap. XII petition for a real property arrangement. Two questions are presented: (1) where the debtors (appellants) withdraw the proposed real property arrangement but failed to submit a new or amended proposal before or at the meeting of creditors, is the bankruptcy referee required by Sec. 481 of the Bankruptcy Act, 11 U.S.C. § 881, either to adjudicate the debtor a bankrupt or to dismiss the debtor petition; (2) when the referee’s dismissal of the debtor’s petition has been affirmed by the district court as authorized…