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IN RE PAL-PLAYWELL, INC.

No. 395, Docket 28620.

334 F.2d 389 (1964)

In the Matter of PAL-PLAYWELL, INC., Bankrupt, Leonard Siegel, Trustee-Appellant, William Saloy and Herbert J. Clark, Appellees.

United States Court of Appeals Second Circuit.

Decided July 13, 1964.

Attorney(s) appearing for the Case

Samuel A. Arutt, New York City (Handelsman, Arutt & Knox and Charlotte P. Arutt, New York City, of counsel), for trustee-appellant.

Eli N. Horin, Jamaica, N. Y., for appellees.

Before LUMBARD, Chief Judge, and MOORE and SMITH, Circuit Judges.

MOORE, Circuit Judge:

The Trustee in Bankruptcy of Pal-Playwell, Inc. appeals from so much of an order of the District Court for the Eastern District of New York as reversed the order of the Referee in Bankruptcy granting summary judgment in favor of the trustee upon his counter-claim for the return of a lease security deposit. The facts are not disputed.

In 1959, Playwell Products, Inc. signed a fifteen year lease and deposited with the landlords $6,990 as...

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