Sampsell

This appeal is from an order of the district court confirming an order of a referee in bankruptcy declaring invalid a chattel mortgage on a number of automobiles of the bankrupt.

In August, 1938, appellant loaned the bankrupt $2,200 on a promissory note secured by the mortgage, which covered eleven automobiles. The mortgage was not filed with the Department of Motor Vehicles and the mortgagee registered as owner of the cars, as required by § 195 of the Vehicle Code of California, St.1935, p. 118, until some five months later, namely, on January 26, 1939. On the same day appellant obtained possession of all the automobiles except one and thereafter sold them for $1,197.

The mortgagor was adjudicated a bankrupt on February 1, 1939, on a petition filed that day. Later, and upon petition by the trustee, an order was issued requiring appellant to show cause why the mortgage should not be declared invalid. After a hearing the referee made an order adjudging the mortgage to be void and authorizing the trustee to sell the car in his possession, free of any lien.

The question presented is whether the delay in complying with the requirements of § 195 of the Vehicle Code rendered the…