52 STAT.] 75TH CONG., 3D SESS. -CH. 575-JUNE 22, 1938 "ARTICLE XI-PLANS, WHEN SET ASIDE OR MODIFIED "SEC. 671. If, upon the application of parties in interest filed at any time within six months after a plan has been confirmed, it shall be made to appear that fraud was practiced in the procuring of such plan and that knowledge of such fraud has come to the petitioners since the confirmation of such plan- "(1) if the debtor has been guilty of or has participated in the fraud or has had knowledge thereof before the confirmation and has failed to inform the court of the fraud, the court may set aside the confirmation and thereupon (a) where the petition was filed under section 621 of this Act, reinstate the pending bankruptcy proceeding, adjudge the debtor a bankrupt, if he has not already been so adjudged, and direct that the bankrupty proceeding be proceeded with, or (b) where the petition was filed under section 622 of this Act, reinstate the proceeding, adjudge the debtor a bankrupt, and direct that bankruptcy be proceeded with pursuant to the provisions of this Act; or "(2) the court may set aside the confirmation, reinstate the pro- ceeding under the petition filed under this chapter, and hear and determine applications for leave to propose, within such time as the court may fix, alterations or modifications of the plan for the pur- pose of correcting the fraud; or "(3) the court may reinstate the proceeding under the petition filed under this chapter and modify or alter the plan for the purpose of correcting the fraud, but may not materially modify or alter the plan adversely to the interests of any party who did not participate in the fraud and who does not consent to such modification or altera- tion, or to the prejudice of any innocent person who, for value, subse- quent to the confirmation, acquired rights in reliance upon it. "ARTICLE XII-GENERAL PROVISIONS "SEC. 676. All statutes of limitation affecting claims provable under this chapter and the running of all periods of time prescribed by this Act in respect to the commission of acts of bankruptcy, the recovery of preferences and the avoidance of liens and transfers shall be suspended while a proceeding under this chapter is pending and until it is finally dismissed. "SEC. 677. Unless otherwise directed by the court, all notices required by this chapter may be given by mail to the parties entitled thereto to their addresses ascertained in the manner prescribed for other notices in section 58 of this Act. "SEC. 678. The clerk and, in the case of a reference, the referee after such reference, shall forthwith transmit to the Secretary of the Treasury copies of- "(1) all petitions filed under sections 621 and 622 of this Act; "(2) all notices given in a proceeding under this chapter; "(3) all orders dismissing proceedings or directing that bank- ruptcy be proceeded with, discharging debtors, closing estates and setting aside confirmations; "(4) all orders approving modifications or alterations in plans, together with copies of such alterations or modifications; "(5) all orders confirming plans, together with copies of such plans; "(6) all orders increasing or reducing the amount of installment payments under plans, and all orders extending or shortening the time for such payments; and "(7) such other papers filed in the proceedings as the Secretary of the Treasury may request or which the court may direct to be trans- mitted to him. i So in original. 937 Plans, when set aside or modified. Fraud in procuring; application by par- ties in interest. Powers of court. Ante, p. 931. General provisions. Suspension of run- ning of statutes of limitation, etc. Manner of giving notice. Ante, p. 867. Transmittal of cop- ies of certain papers to Secretary of the Treas- ury. A.ite, p1. 931.
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