Shortridge

On July 2, 1948, the Northern Meat Company filed its petition in bankruptcy, and was thereafter adjudged a bankrupt. Previously, on March 24 of that year, appellant had caused a writ of garnishment to be issued in a suit in the state court against the Meat Company, and by this process had obtained a lien upon the latter’s bank account in an amount exceeding $500. The suit was apparently contested and was still pending at the time of the Meat Company’s adjudication. The Trustee (appellee here) intervened to challenge the validity of the lien, asserting that the bankrupt was insolvent as of the date of its acquisition. The Trustee and the parties plaintiff and defendant in the suit stipulated that the question of insolvency be resolved by the bankruptcy referee, it being agreed by all concerned that the sequestration of the bankrupt’s funds was had within the four mouths’ period prescribed by the Act, 11 U.S.C.A. § 107 , sub. a(l). The state court postponed disposition of the challenged writ until the final determination of the controlling factual issue in the federal jurisdiction. Thereafter the matter came on for hearing before the referee on the Trustee’s petition; and upon the…