1952 to overcome inequities resulting from the holding in the Haytian case, supra, Section 737 was amended to its present form in order to liberalize payments to unofficial creditors' committees for the services rendered by them prior to the appointment of the official Creditors' Committee. U.S.Code Cong. & Admin.News, 82d Cong.1952, Vol. 2, pp. 1980-1981.
The claims for allowance herein concededly do not fall within the first two provisos of Section 737, in that the services rendered did not either contribute to the confirmation of the arrangement (which was unsuccessful) nor were they rendered in connection with the refusal of the confirmation of the arrangement. It is urged that the services were beneficial to the estate and hence the allowances should be permitted under the third proviso of Section 737. However, the Referee found as a fact that there was no showing that the services were beneficial in the administration of the estate and, on the record in this case, there is no showing to the contrary.
It should further be noted that this unofficial committee has not complied with the terms of Section 737, supra, in that unofficial committees and their representatives shall receive allowances for their services 'before or after the filing of the petition under this chapter by a committee designated in writings, filed with the court and signed and acknowledged by a majority in amount of unsecured creditors whose claims have been scheduled otherwise than as contingent, unliquidated or disputed * * *.' No such designation by the unsecured creditors is in the present record.
It is well settled that the Bankruptcy Court lacks the power to grant, and the policy of the Bankruptcy Act is against, compensation not expressly provided for by the Act. Lane v. Haytian Corp., supra, 117 F.2d at page 219. In re Brigantine Beach Hotel Corp., 3 Cir., 1952, 197 F.2d 296, cited by the claimant herein, is not in point because in that case it was expressly found that the efforts of the attorney for the Creditors' Committee were beneficial to the estate in recovering, for the benefit of creditors, the principal asset of the estate. An examination of In re New York, Ontario and Western Railway Co., D.C.S.D.N.Y.1958, 171 F.Supp. 634, cited by both parties herein, reveals an entirely different factual situation. There the efforts of the parties for the benefit of the debtor extended over a period of twenty years and were rendered with the hope that a reorganization would be successful. Such is not the factual situation here. It is further noted that the proceedings in the New York, Ontario and Western case were under the provisions of the Bankruptcy Act relating to the reorganization of railroads, and not the provisions of Chapter XI as herein invoked.
Although the claims here are for allowances for the attorney for the Creditors' Committee and for the secretary of the Creditors' Committee, no statement of the services of the latter has been submitted for consideration. However, in the light of the foregoing, such allowances were properly denied by the Referee, and his order under review is affirmed.