In Re Mercury Engineering

On December 1, 1944, an involuntary .petition was filed against Mercury Engineering, Incorporated, a corporation. After hearing had, an adjudication was made on January 3, 1945. On February 12, Arthur E. Barili filed a claim in the sum of $6689.07, upon a judgment of the Superior Court of the State of California, for Los Angeles County, dated July 12, 1944. The judgment was rendered in an action brought by Barili against Charles B. Taylor as Trustee and others, for the balance due on a promissory note secured by a chattel mortgage on certain equipment and personal property belonging to the bankrupt. It was entered upon a stipulation signed by the parties, which, after reciting the failure to make certain payments, agreed to the entry of a judgment by reason of such default. The judgment recited the default of payment, notice of default and ordered judgment for the whole balance due on the promissory note. To satisfy the judgment, the Court ordered the foreclosure of the chattel mortgage and the sale of the property by the sheriff. The Trustee filed objections to the claim. He also asserted ‘in his objections’ a counter-claim or set-off. On April 10, 1945, the Referee suspended the…