Volume 212 — Federal Reporter, Second Series

<p>On July 2, 1952, the debtor moved before the Referee for (1) an order expunging the warrant from the state judgment docket, (2) a permanent injunction against any proceeding by the respondent against the debtor outside the bankruptcy court, and (3) a determination of the question whether or not interest arose on the claim of respondent after July 30, 1948. The Referee found, as a “conclusion of law,” that respondent was not entitled to interest on his claim beyond the date of the filing of the debtor’s petition for an arrangement.; accordingly he granted debtor’s motion. Respondent petitioned for review of this order to the United States District Court, which vacated the injunction and held, inter alia, that the order of the Referee “is not to be construed as an adjudication that the claim of the Industrial Commissioner for interest and penalties accrued since July 30, 1948 is either invalid or has been paid.” It did continue a temporary injunction until entry of the final decree and did order the warrant expunged from the judgment docket — an order which has been complied with. At the time of the hearing below a final decree had not been entered in the arrangement proceedings.</p>