Sweney v. Cardinal Doors, Inc. (In Re Door Supply Center, Inc.)

MEMORANDUM DECISION

MERLIN S. YOUNG, Bankruptcy Judge.

This matter is before the Court upon trustee’s motion seeking a judgment on the pleadings or in the alternative for a summary judgment holding that defendant failed to perfect its security interest against him as a hypothetical judgment creditor under section 70(c) of the Bankruptcy Act. Trustee also seeks permission to sell the machinery, equipment and inventory of the bankrupts free and clear of the defendant’s security interest.

The debtor corporation and the defendant creditor entered into a written agreement that granted defendant a…