Lama Company, a Corporation v. Union Bank, a Corporation, and William N. Bowie, Jr., Trustee in Bankruptcy of the Estate of Charles A. Crowl

Before us is an appeal by Lama Company, a corporation, hereinafter called appellant, from an order of the District Court affirming an order of the Referee in Bankruptcy.

The facts are not in dispute. The following summary is taken from the Referee’s Certificate on Review to the District Court and the Findings of Fact of the Referee.

Prior to and at the date of bankruptcy, the bankrupt had occupied and was occupying certain premises belonging to appellant under an unexpired written lease providing for monthly rental of $743.00 plus an additional monthly charge of $16.00 for insurance premiums. Prior to and on the date of bankruptcy, there was located on said premises personalty utilized by the bankrupt in his business, consisting of machinery, equipment and fixtures which were inventoried by the trustee on July 30, 1961. All of said property belonged to the bankrupt but two-thirds of the machinery and equipment (both in dollar value and in physical space occupied) was subject to the liens of a valid chattel mortgage executed by bankrupt in favor of appellee, Union Bank. The remaining machinery, equipment and fixtures were owned, by the bankrupt free and clear.

After July 30,…