Page:United States Statutes at Large Volume 52.djvu/928

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 575-JUNE 22, 1938 "ARTICLE V-ANSWER "SEC. 136. Within ten days after the service of the subpena and of a copy of the petition, or within such further time as the court may for cause shown allow, an answer controverting the facts alleged in the petition may be filed by the debtor. "SEC. 137. Prior to the first date set for the hearing provided in section 161 of this Act, an answer controverting the allegations of a petition by or against a debtor may be filed by any creditor or indenture trustee or, if the debtor is not insolvent, by any stockholder of the debtor. "ARTICLE VI-APPROVAL OR DISMISSAL OF PETIION "SEC. 141. Upon the filing of a petition by a debtor, the judge shall enter an order approving the petition, if satisfied that it complies with the requirements of this chapter and has been filed in good faith, or dismissing it if not so satisfied. "SEC. 142 . If an answer is not filed by a debtor to a petition against it, or if the answer filed does not controvert any material allegation of the petition, the judge shall enter an order approving the petition if satisfied that it complies with the requirements of this chapter and has been filed in good faith, or dismissing it if not so satisfied. "SEC. 143. If the answer of a debtor shall controvert any of the material allegations of the petition, the judge shall, as soon as may be, determine, without the intervention of a jury, the issues presented by the pleadings and enter an order approving the petition, if satis- fied that it complies with the requirements of this chapter and has been filed in good faith and that the material allegations are sus- tained by the proofs, or dismissing it if not so satisfied. "SEC. 144. If an answer filed by any creditor, indenture trustee, or stockholder shall controvert any of the material allegations of the petition, the judge shall, as soon as may be, determine, without the intervention of a jury, the issues presented by the pleadings and enter an order approving the petition, if satisfied that it complies with the requirements of this chapter and has been filed in good faith and that the material allegations are sustained by the proofs, or dismissing it if not so satisfied. "SEC. 145. If any issue raised in an answer filed under section 136 or 137 of this Act has, after hearing upon notice to the debtor, creditors, indenture trustees, and stockholders entitled to controvert the allega- tions of the petition, already been tried and finally determined under the provisions of section 143 or 144 of this Act, such final determination shall be conclusive for all purposes under this chapter. "SEC. 146. Without limiting the generality of the meaning of the term 'good faith', a petition shall be deemed not to be filed in good faith if- "(1) the petitioning creditors have acquired their claims for the purpose of filing the petition; or "(2) adequate relief would be obtainable by a debtor's petition under the provisions of chapter XI of this Act; or "(3) it is unreasonable to expect that a plan of reorganization can be effected; or "(4) a prior proceeding is pending in any court and it appears that the interests of creditors and stockholders would be best sub- served in such prior proceeding. 887 Answer. Period allowed. Filing of answer controverting allega- tions. Post, p. 889. Approval or dis- missal of petition. Conditions upon which judge may ap- prove or dismiss debt- or's petition. Action if no answer is filed by debtor, etc. If debtor contro- verts material allega- tions. Ifcreditor, etc., con - troverts material alle- gations. Conclusi veness of final determination of Issues. Petitions deemed not led in good faith. Post, p. 905.

�