Frazer v. Consolidated Novelty Co.

The Chancellor.

The question which the exceptions present is whether or not an allowance may be made to the receiver for the services of himself and his counsel which, if paid, must come out of the proceeds of sale of personal property of the insolvent upon which the exceptant had a lien by way of levy before the bill for a receiver was filed.

The general proposition that a receiver’s allowances are not entitled to outrank the priority of an existing lien obtained before the receivership proceedings were instituted, is insisted on by the exceptant. Ferris v. Chic-Mint Gum Co., 14 Del. Ch. 232,…