Ideal Building & Loan Ass'n v. Bateman

DAVIS, Circuit Judge.

This is an appeal from a decree of the District Court allowing the appellee to sell certain machinery used as a part of the bankrupt’s business. The appellant objects to the sale on the ground that as mortgagee of the realty, it has a first lien upon this machinery, which it alleges has become a part of the realty. The appellee, however, contends that this machinery was the personal property of the bankrupt and did not become part of the mortgaged premises.

In 1921 the American Pile Fabric Company, hereinafter called the Fabric Company, decided to purchase the land and…