In re Livingston

The bankrupt was in possession of a certain Dodge truck when he filed his petition in bankruptcy. The truck was then subject to a chattel mortgage, in which the ■Bankrupt was the mortgagor and the Bank of Lake, herein referred to as the Bank, the mortgagee, given to secure an indebtedness owing by the Bankrupt to the Bank. After the filing of the petition the Bank took possession of and sold the truck to a third party. , Following the sale and when the Bank no longer had possession of the truck, the Trustee in Bankruptcy filed a petition reciting these facts and praying that the Bank be required to account for the difference between the indebtedness owing to it and the value of the truck. The Bank appeared and objected to the jurisdiction of the Court, asserting that since the truck was not in its possession or in the possession of either the Bankrupt or the Trustee, the Court could not make a summary order. The Court in a summary proceeding determined the reasonable value of the truck and ordered thfe Bank to pay to the Trustee the amount thereof above the Bank’s lien. The Bank seeks review of that order.

I agree fully with the Referee that the Bank has ácted in an arbitrary and…