Cheek

The trustee in bankruptcy filed this action to set aside an alleged voidable preference under Section 60 of the Bankruptcy Act, 11 U.S.C.A. § 96 . There is no substantial controversy as to the facts.

In 1947 defendant leased premises to the bankrupt, Homan’s Inc., for use as an “on-sale” liquor store. By May, 1950 the bankrupt was insolvent and indebted to the defendant in the sum of $2,000 representing five months unpaid rent.

During the month of April, 1950 one Scaglione and his associate, Mejia, contacted defendant’s agent, Earl Haskell, and inquired about obtaining a lease of the premises in the event they were vacated by the bankrupt. They were informed that the defendant would enter into a lease only if the $2,000 indebtedness were paid. Thereafter on May 10, 1950 Scaglione and Mejia, as purchasers, entered into an escrow agreement with the bankrupt, as seller, for the purchase of the furniture, fixtures and equipment of the business, the good will, title and interest in the trade-name, “Ho-man’s”, and the liquor license (which is transferable under the state law), for a total consideration of $10,650. The sale was subject to the condition that “seller is to procure for…