The opinion of the court was delivered by: GOURLEY
This matter arises out of a bankruptcy proceeding, and relates to the granting of a permanent injunction against execution creditors of the bankrupt.
On the 21st day of July, 1949, Matthew Stanley Hudzinski, trading as Villani Food Market, filed a petition in voluntary bankruptcy, and was adjudicated a bankrupt on said date.
Contemporaneous therewith application was made to the Court for a temporary restraining order, without notice, due to inadequacy of time, to restrain the execution creditors and the Sheriff of Allegheny County, Pennsylvania, from proceeding with the sale of the assets of the bankrupt. A temporary restraining order was issued by the Court on the 21st day of July, 1949, returnable to the 26th day of July, 1949. This was done due to the irreparable injury which would arise to the creditors of the bankrupt if the bulk of his assets were permitted to be sold.
Pending the adjudication of the granting of a permanent injunction, the Court extended the effectiveness of the temporary restraining order until July 29, 1949, at 10:00 A.M., E.D.S.T.
The Federal Rules of Civil Procure, rules 65(b) and 65(c), 28 U.S.C.A., which require the giving of security before the issuance of a restraining order or a preliminary injunction, do not apply to a bankruptcy proceeding. In re International Railway Co., D.C., 85 F.Supp. 331.
The problem now before the Court relates to the granting of a permanent injunction.
The execution creditors have objected to the granting of said injunction, and a full and complete hearing has been held in connection therewith.
On the 8th day of July, 1949, George Vallini and James Vallini caused judgment to be entered in the Court of Common Pleas of Allegheny County, Pennsylvania, against Matthew S. Hudzinski, in the amount of $ 1258, the basis for said claim being as follows:
Delinquent rent $ 984.00
Delinquent gas payments 24.00
Damages to real estate 100.00
Attorney's Commission 150.00
Total $ 1258.00
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