In Re Lux's Superette, Inc.

FREEDMAN, District Judge.

We have before us for review an order of Referee Hiller in a bankruptcy reclamation proceeding. Petitioners claim title to certain property found in the possession of the bankrupt corporation. They claim that the property involved belongs to Donald M. Balliet and Lambert Lux, the principals of the bankrupt corporation and that even if the property does constitute part of the bankrupt’s estate a perfected security interest in their favor exists which takes priority over the Trustee’s claim. The facts are somewhat obscure and some of the evidence appears inconsistent.…