In re Jay-Norm Corp.

Prior to bankruptcy, Jay-Norm Corporation as lessee and Haig M. Prince as lessor executed a lease covering real property which provides for monthly installments of rent to be paid on the 25th day of each month. The lease also provides that if bankruptcy is filed by the tenant and remains for a period in excess of five days, this fact shall, at the option of the lessor, be deemed a breach of the lease. It further provides that in the event of failure to pay rent the lessor, at his option, may declare a breach of the lease.

The installment of rent due on February 25, 1958, is unpaid. On March 5, 1958, the bankrupt filed a voluntary petition in bankruptcy, an adjudication was made, the trustee of the bankrupt estate took possession of the demised premises and occupied them until March 30, 1958, on which date he terminated the occupancy. The lessor contends he is entitled to rent as a priority debt under Section 64, sub. a of the Bankruptcy Act, 11 U.S. C.A. § 104, for the entire period of the trustee’s occupancy, i. e. from March 5, 1958, to March 30, 1958.

On May 7, 1958, the Trustee in Bankruptcy filed a “Petition for Order to Show Cause Determining Trustee’s Liability For…