Harlan F. Stone

“ In cases where the defendant made timely objection to a determination by the referee, it has been said that the referee is without power to hear the issues involved in a plenary suit, and that such a suit, if brought before him, must be dismissed for want of jurisdiction. ”

“ Section 1 (7) , 11 USCA § 1 (7) provides that "court' shall mean the court of bankruptcy in which the proceedings are pending, and may include the referee.' By the two sections read together, the District Court in which the proceeding is pending is designated as a court where the trustee may bring the suit if consented to, and that court 'may include the referee,' to whom it has referred the proceeding. ”

“ Where a suit by the trustee is plenary in character, as are those authorized by section 60b, both parties to it are entitled to claim the benefits of the procedure in a penary suit, not available in the summary method of procedure which, under the provisions of the Bankruptcy Act, is employed by the referee. A denial of those benefits would be in effect a denial of the right to a plenary suit, to which both parties are entitled under section 60b. ”