does not release him from his obligation to pay the rent. * * *'
And in a case involving the question of the status of a lease when it has been rejected by a trustee in bankruptcy of the lessee, Judge Kalodner said In re Gravure Paper & Board Corp., 234 F.2d 928 at 930 (3d Cir. 1956):
'* * * It is will settled that '* * * when the trustee in bankruptcy abandons and asset, he is to be treated as having never had title to it; the abandonment is said to relate back, so that the title stands as if no assignment had been made."
In summary, there is no clause in the lease automatically terminating the lease upon the bankruptcy of the lessee and also the rejection of the lease by the trustee did not terminate the lease. In fact there is nothing in the record to indicate that the lessor has even attempted to exercise his rights under the lease
unilaterally to terminate the lease. It follows therefore that the lease provision providing that title to the slush dams would revert to the lessor upon 'termination' of the lease does not apply to the situation in the present case.
Accordingly, when the petition in voluntary bankruptcy was filed, the lease was still in effect and the slush dams were the property of the lessee. Since these slush dams are personal property
of the bankrupt lessee, which 'prior to the filing of the petition he could by any means have transferred or which might have been levied upon and sold under judicial process * * *', the trustee by operation of law has been vested, as of the date of the filing of the bankruptcy petition, with title to the slush dams superior to any interest of the lessor.
The same result is reached if the trustee is deemed vested under Section 70, sub. c of the Bankruptcy Act, 11 U.S.C.A. § 110, sub. c, with title to such property as a hypothetical lien creditor could attach as of the date of bankruptcy.
As an alternative argument, lessor asks the court to find that the trustee abandoned the slush dams as an asset of the bankruptcy estate. In support of this argument, lessor points out that the slush dams were not listed in the inventory, that the lease under which bankrupt's rights in this personal property arose was rejected by the trustee, and that the petition to sell these slush dams was not filed until approximately five months after the rejection of the lease. This contention must likewise be rejected. Although the Bankruptcy Act does not require any particular method or degree of formality for the abandonment of assets by the trustee, it is essential that there be a clear and unambiguous manifestation of such an intention to abandon on the part of the trustee.
Neither the mere passage of five months time, nor the failure to list the slush dams in the inventory,
nor the rejection by the trustee of the lease of the real estate, can be considered a clear and unambiguous manifestation of an intention to abandon this personal property.
The bankruptcy referee dismissed the lessor's objections to the trustee's petition to sell the coal material clear of claims of the lessor. In this he was correct. The petition for the review of the Referee's order must be denied.