In re Spotless Tavern Co.

CHESNUT, District Judge.

The adjudication in bankruptcy occurred on January 11,1933. The bankrupt had been engaged in conducting a restaurant at Annapolis, Maryland. At the time of the adjudication there was on record what purported to be a valid chattel mortgage on the fixtures of the bankrupt’s business place in the amount of $3,000 in favor of one' Steve Foundas, which had been duly executed and recorded July 20,1932.

Shortly after the adjudication these fixtures were sold by the receiver to the said Steve Foundas for $325 subject to the chattel mortgage, and were subsequently removed from…