The opinion of the court was delivered by: MEANEY
This proceeding is a petition for review of an order of the Referee in Bankruptcy denying a motion for dismissal of the Receiver's counterclaim against the appellant who theretofore had filed a petition for reclamation for certain molds in the possession of the Debtor at the time of the filing of its petition under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq.
The factual situation is not in dispute and may be briefly set forth as follows:
1. Prior to the filing of the petition under Chapter XI, C. A. Goldsmith Co. (hereinafter referred to as the Debtor) was engaged in the foundry business.
2. In the course of such business the Debtor entered into an agreement with Teal Corporation, the appellant herein, for the manufacture of certain steel castings.
3. Said steel castings were to be made from molds furnished by Teal Corporation to the Debtor, title to which molds was to remain in the Teal Corporation.
4. Over a period of several months prior to filing of the Debtor's petition, the Debtor manufactured and delivered certain steel castings to the Teal Corporation.
5. The said castings were made through use of the molds furnished the Debtor by Teal Corporation.
6. At the time of the filing of the Debtor's petition certain sums of money were due and owing the Debtor by Teal Corporation for steel castings made with the molds aforesaid.
7. After the filing of the Chapter XI proceedings by the Debtor, Teal Corporation demanded the return of the molds, which demand was refused.
8. Thereafter Teal Corporation filed a petition for reclamation.
9. The Receiver filed an answer admitting that he was in possession of the subject matter of the petition for reclamation, and admitted that it was the property of Teal Corporation.
10. At the same time the Receiver filed a counterclaim for moneys allegedly due the Debtor for steel castings made by due of the molds, and delivered to the petitioner herein, asserting that the Debtor had a lien on the molds, and further asserting that by reason of the institution of the petition for reclamation the petitioner herein was subjected to the jurisdiction of the ...