BANKRUPTCY - CORPORATE REORGANIZATION - VALIDITY OF PROCESS OUTSIDE TERRITORIAL CONFINES OF FEDERAL DISTRICT COURT

Debtor corporation had contracted with defendant, operator of a retail store, whereby defendant agreed to sell debtor's products exclusively and to buy all of his supplies from debtor. While debtor was in the course of section 77 B reorganization proceedings, defendant refused to continue to comply with the contract, Defendant resided and did business in the same state and federal judicial circuit in which the reorganization court was located, but not within the territorial confines of the court, nor was process served upon defendant within the court's territorial jurisdiction. Debtor moved for specific performance of the contract. Held, debtor's motion should be denied on the ground that the court had no power to issue its process beyond its territorial limits.

In re Avondale Farms Dairy Inc., (D. C. Pa. 1938) 25 F. Supp. 605.