Gilbert Robinson, Trustee, Etc. v. John H. Hadley and Lucille M. Hadley

On January 3, 1964, the Beefeater Inn, a California corporation which operated a restaurant in Los Angeles, filed an original petition for arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C. §§ 701-799 . The referee entered an order appointing David Robinson, appellant herein, as receiver, authorizing him to operate the business of Beefeater until further order of the court and enjoining creditors and lessors from interfering with the operation of the business. On January 29, 1964, Robinson as receiver for Beefeater applied for an order authorizing him to pay past due and future rent to John H. Hadley and Lucille M. Hadley, lessors of the premises occupied by the Beefeater Inn and appellees herein. The receiver alleged in said application that unless said rent was paid pursuant to the written lease between appel-lees and Beefeater the appellees would regard the lease as terminated pursuant to the “bankruptcy clause” in the lease which provided:

It was further alleged in said application that “it is a condition precedent to the effective presentation of any plan of ar rangement in this proceeding that said rental payments be brought up to date and said leases be…