No. 250, Docket 27218.

302 F.2d 636 (1962)

DUTCH AMERICAN MERCANTILE CORPORATION, a Creditor, Itemlab, Inc., as Debtor-in-Possession, and Isidore Cherno, trustee, Appellees, v. EIGHTEENTH AVENUE LAND CO., Appellant.

United States Court of Appeals Second Circuit.

Decided May 4, 1962.

Attorney(s) appearing for the Case

Joseph N. Friedman, New York City (Binder, Silber & Stangler, West Hempstead, N. Y., on the brief), for appellant.

Emanuel Becker, New York City (McLanahan, Merritt & Ingraham, New York City, on the brief), for appellees.

Before LUMBARD, Chief Judge, and HAYS and MARSHALL, Circuit Judges.

MARSHALL, Circuit Judge.

Itemlab, Inc., petitioned for an arrangement under Chapter XI of the Bankruptcy Act. It then moved, as debtor-in-possession, for a declaration that a certain chattel mortgage executed jointly by the debtor, Itemlab, Inc., and Itemco, Inc. in favor of Eighteenth Avenue Land Co., appellant herein, is not a valid lien. The challenge was premised on the failure of two-thirds of the debtor's stockholders...

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