Welsch v. Palumbo

The plaintiff, who is trustee in bankruptcy of. T.B. Massaro Company (hereinafter called the corpora-*400tian), brings this bill in equity to have a chattel mortgage given by the corporation to the defendant Palumbo declared invalid. The bill also asks to have the transfer of the mortgaged property to Palumbo by foreclosure adjudged a voidable preference under the bankruptcy act and that he “be ordered to account to the plaintiff for whatever property . . . [he] received and to return the same to the plaintiff or to pay him the value thereof.” 1 The judge made a report of material facts. Pursuant…