In re Flayton

ABRUZZO, District Judge.

This is a hearing on a petition for review of the order of the referee, denying the application of M. M. Smith & Son, Inc., a creditor, in reclamation.

The merchandise was delivered to the bankrupt by this creditor and accepted on or about November 4, 1940. On November 12, 1940, the bankrupt filed a petition in bankruptcy under Chapter XI, 11 U.S.C.A. § 701 et seq., and subsequently the petition was dismissed and adjudication and a liquidation of assets ordered.

Friedman, an employee of the creditor, contacted Charles Flayton, the bankrupt, as a result of which the sale…