RAMANATHAN CHETTY Vs. MIRA SAIBO MARIKAR

JUDGEMENT

(1.) This is an appeal from a decree of the Supreme Court of the Island of Ceylon reversing a decree of the District Court of Colombo. The relevant facts can be briefly stated. The parties to the action were both of them creditors of Nana Moona Mahamado Rawther and Co., who carried on business as ten merchants at Nos. 35 and 65, Second Cross Street, Colombo, and who may be conveniently referred to as " the firm." On 18 June 1925, the firm filed their petition in insolvency.

(2.) The respondent, who carried on business at No. 69, Second Cross Street, and had heard of the insolvency, observed that ten was, on 2l June, 1925, being removed from the firm's premises at 65, Second Cross Street. The tea was on that day being removed in pursuance of an agreement which had been come to between the firm and the appellant on 16 June 192S whereby tea. and other goods were invoiced by the firm to the appellant at a sum of Rs. 21,700, the appellant being debited with that amount in account. In fact, large quantities of tea had already in pursuance of this arrangement, bean re novel on 16 and 17 June from the firm's premises to the appellant's premises No. 102, Sea Street.

(3.) The respondent and certain other creditors of the firm became, not unnaturally suspicious, and on 21st June 1925, they entered into an agreement to take the necessary Court proceedings, by appointing one of themselves as "leading person." The respondent appears to have bean selected for this purpose. Before referring to the Court proceedings which were taken by the respondent it is convenient to state at once, that by a judgment delivered in the District Court of Colombo on 14 September 1925, it was decided (and the matter is res judicata, between the parties to this appeal) that the ten in question was sold by the firm to the appellant on 16 June 1925 and was the property of the appellant.