In re Fox West Coast Theatres

Proceeding to review an order of the referee in bankruptcy. The bankrupt held a lease on the Plaza Theatre in Hawthorne, acquired by assignment from the original lessee. It was the owner by purchase of the furniture and operating equipment of the theater which it had purchased from its predecessor under the lease. The lessor, Income Syndicate, Inc., held a chattel mortgage against the furniture and equipment which was in existence when the bankrupt took over the theater, and the bankrupt assumed full liability thereunder.

The trustee in bankruptcy, upon coming into possession of the bankrupt’s property, disaffirmed the lease and claimed that no lien existed in favor of Income Syndicate, Inc., against the furniture and equipment of the theater. His contention was that as against him the chattel mortgage was void because: (1) The mortgage was not recorded within a reasonable time after the making thereof; (2) that the mortgage contained no sufficient description of the debt for which it was given, neither as to the amount thereof or the due date.

The referee determined that the chattel mortgage was void as to the trustee. Thereupon the Income Syndicate, Inc., filed its petition to…