Leasehold rights protected attached machinery from sale in sales tax recovery proceedings where possession had already vested in the lessee.

Machinery attached in sales tax recovery proceedings could not be removed and sold outright where the petitioner had pre-existing leasehold rights giving exclusive possession and use of the factory and machines. The attachment, having been made after those rights arose, operated only subject to the subsisting lease. The machines were treated as affixed machinery rather than ordinary movables, so the recovery process could not defeat the petitioner's interest. The direction to produce the machines for auction was therefore wrong, and the petitioner was entitled to retain possession while the lease continued.

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Issues: Whether machinery attached in sales tax recovery proceedings could be removed and sold outright despite the petitioner's subsisting leasehold rights in the factory and machines.

Analysis: The petitioner held an existing lease and was entitled under the lease to exclusive possession and use of the machines. The attachment was made after the leasehold rights had been acquired, so the recovery proceedings could operate only subject to those rights. The machines were treated as affixed machinery and not as ordinary movable articles, and in any event their sale could not override the petitioner's subsisting interest.

Conclusion: The direction requiring production of the machines for auction was wrong. The attempt to remove and sell the machines outright could not stand against the petitioner's leasehold rights, and the petitioner was entitled to retain possession so long as those rights continued.

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