298 F. 307 | N.D. Ga. | 1924
The evidence certified by the referee shows that a statement of financial standing was made on the day the goods were purchased, and in order to buy them, which is now admitted to have been materially false, and that the goods were sold on the strength of it. The goods sold are largely on hand and have been identified. No payments have been made, apparently,* upon'the bill.
Since the trustee’s lien is equal only to one arising by legal or equitable proceedings, it is in Georgia, as in Alabama, not superior to the right of the rescinding seller. Code Ga. § 4307. See, also, the decisions to this effect by this court. In re Spann, 183 Fed. 819; In re Underwood & Daniel, 215 Fed. 279; Collier on Bankruptcy (13th Ed.) pp. 1716 to 1718. The seller should have been allowed to reclaim his goods.
Judgment reversed.