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Robert B. Steinberg petitioned for an Arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq., in the United States District Court for the Southern District of California, Central Division. The petition was approved and an Order of Reference to a Referee in Bankruptcy entered on January 27, 1954. The Order of Adjudication in Bankruptcy was dated April 21, 1954.

On February 19, 1954, a Reclamation Petition was filed by Appellant for the recovery of certain office furniture and equipment from H. M. Gerson, Trustee in Bankruptcy, the Appellee here. A hearing was had before the Referee in Bankruptcy and from the evidence introduced the Referee made and entered Findings of Fact, Conclusions of Law and an Order denying said Petition. On a Petition for Review the District Court adopted the findings of the Referee and confirmed the Order of the Referee denying the petition of Appellant. This appeal is from said Order.

Appellant and Bankrupt entered into a transaction whereby appellant was to sell Bankrupt certain new office furniture and equipment and make an allowance on the furniture to be turned in by the Bankrupt. At the time of delivery of said furniture by…