In the Matter of Cochran Paving Company, Inc. L. F. Pye, Creditor's Reclamation Petition, James M. Barnes, Trustee in Bankruptcy

Pye filed a petition seeking to reclaim property in the possession of the trustee in bankruptcy and held by the bankrupt under a title retention contract in favor of Pye. The trustee raised as defenses that the transaction under which Pye claimed was fraudulent under federal and state law; that Pye had filed, and dismissed, a foreclosure and levy on some of the bankrupt’s property, causing his lien to be lost or satisfied under state law; that there had been accord and satisfaction between Pye and the bankrupt.

The Referee found the transfer was fraudulent and denied the petition. He did not…