The opinion of the court was delivered by: BRUCHHAUSEN
The petitioner, Newport Associates, Inc., the landlord of the debtor in possession, seeks a review of the order of Hon. William J. Rudin, Referee in Bankruptcy, dated November 14, 1968, denying the landlord possession of the premises, now occupied by the said debtor, on or before December 31, 1968.
1. The subject premises, comprising approximately 100,000 square feet, have been under lease to the debtor for several years. The debtor has 65 employees;
2. The landlord acquired title to the property approximately a year ago;
3. On July 17, 1968, the debtor filed a petition pursuant to Chapter XI of the Bankruptcy Act;
4. On July 25, 1968, the petitioner notified the debtor of its election to terminate the said lease;
5. On August 14, 1968, the landlord leased the entire premises to Electrospace Corporation, conditioned upon the surrender thereof to it on or before December 31, 1968;
6. Electrospace Corporation has a Twenty Million dollar contract with the Government.
At the hearing before the Referee, held on November 6, 1968, he ruled that the debtor should surrender 40,000 square feet of the space to the landlord on or before December 15, 1968 and an additional 10,000 square feet by December 31, 1968.
The landlord asserted that it must have the entire 100,000 square feet by the first or second month of the year 1969.
The Referee stated that 'it may be you (the landlord) will have the balance of the space by December 31, 1968 because I am not going to permit the debtor to continue indefinitely without the debtor making some progress in its arrangement.'
The landlord contends that the Referee erred in requiring the debtor to surrender 50,000 square feet of space on or before December 31, 1968 without giving it the right to decline to accept such space and in refusing to fix a date for the surrender of the entire space to the landlord before December 31, 1968. Clearly, the said lease of the subject premises to Electrospace Corporation is beneficial to the landlord, the petitioner. The Referee, ...