HOE KIM SEING Vs. MAUNG BA CHIT

JUDGEMENT

(1.) THIS appeal from a judgment of the High Court of Judicature at Rangoon raises the question whether the property in certain paddy belonging to one Maung Po Ni had passed to the appellant, Hoe Kim Seing, before the date on which the estate of the former vested in the Official Receiver who was appointed by the Court adjudging him an insolvent.

(2.) THE circumstances, which have led to the dispute, may be briefly stated. Maung Po Ni (hereinafter called Po Ni) was a cultivator of paddy in Burma and also dealt in the purchase and sale of that commodity. He made his purchases with borrowed capital, and in 1930 he was indebted to several persons, including the appellant, who was a merchant doing business on a large scale in the purchase of paddy. He had advanced about two lakhs of rupees to Po Ni for the purchase of paddy, which was to be delivered by the debtor to the creditor in satisfaction of the debt.

(3.) THE second lot of paddy measuring about 7,000 baskets belonged to one Hubba, and he sold it to Po Ni on April 25, 1930, at the same rate, viz. , at Rs. 160 for 100 baskets. THE notes exchanged between the parties contained similar terms, except that the seller received on that date Rs. 600 as earnest money. THEre is ample evidence, and indeed it is not disputed, that the buyer paid to the seller also another sum, Rs. 100, on that very date, and Rs. 6,000 on May 21, 1930. THE balance of the price to be paid by him was, therefore, reduced to Rs. 4,500. Of this lot of paddy, 1,600 and 720 baskets were received by him on May 26 and 27, 1930, respectively, and consigned by him to the appellant at Rangoon. THE paddy which then remained in the godown was about 5,116 baskets.