Cedar-Comp Materials Co., Inc. v. A. J. Bumb, Trustee

Before us is a timely appeal from an order entered by the District Court on petition to review an order of the Referee in bankruptcy modifying the order of the Referee

Following the hearing on an order to show cause issued by the Referee in bankruptcy, directed to the appellant, why an order should not be entered adjudging that appellant is indebted to the bankrupt estate in the amount of $8,-078.50, and further ordering that appellant’s claim be disallowed until such time as appellant has paid in full the above sum, together with interest, to the trustee, the Referee found as facts:

That the bankrupt filed a voluntary petition in bankruptcy on May 22, 1961; that appellant filed its claim against the bankrupt estate in the amount of $8,-531.15; that the bankrupt paid to appellant the sum of $2,000 on February 2, 1961, and the further sum of $1,000.00 about March 3, 1961; that on April 5, 1961, appellant filed a law suit, caused a writ of attachment to levy in connection therewith, and a keeper to be placed in possession and control of bankrupt’s place of business, and thereafter obtained a judgment against the bankrupt, and on or about May 9, 1961, caused the assets of…