In the Matter of Stanley David Leslie. Max Sobel Wholesale Liquors, Creditors-Appellants v. M. Nolden, Trustee-Appellee

Twelve creditors of Leslie, the bankrupt, appeal from the district court’s affirmance of an order of the referee in bankruptcy directing that certain proceeds from the sale of the bankrupt’s liquor business be turned over to trustee of the bankrupt estate. We affirm.

The facts are not in dispute. In March, 1971, the bankrupt executed an agreement to sell his California on-sale liquor license and related business assets to one Daniels for $25,000. In April, 1971, as required by §§ 24073-74 of the California Business and Professions Code, an escrow was opened in which Daniels deposited the consideration. In August, 1971, the state Alcoholic Beverage Control Department (ABC) approved the sale. On September 9, 1971, Leslie filed his petition in bankruptcy.

Sections 24073 — 74 provide that transfer of a licensed liquor business must be approved by ABC and that before the filing of the transfer application the transferee must deposit in an escrow the consideration for both the license itself and the other business assets. Upon ABC approval, the license and other assets pass to the transferee and the escrow holder distributes the proceeds to the seller and his creditors…