(1.) This is an appeal by special leave from a judgment and order of the Supreme Court of the Island of Ceylon delivered on 3 March 1931, whereby that Court by a majority answered adversely to the appellant a question of law reserved and referred for the decision of that Court by Lyall-Grant, J., under S. 355 (1), Criminal P. C. of Ceylon (Ordinance No. 15 of 1898) after the conviction and sentence of the appellant at a Session of the Supreme Court in its criminal jurisdiction for the Midland Circuit held at Kandy. S. 355 (1). Criminal P.C. of Ceylon is as follows: "355 (1).When any person has in a trial before a Judge of the Supreme Court acting in the exercise of its original criminal jurisdiction been convicted of an offence and sentenced, the Judge, if he thinks fit, may reserve and refer for the decision of a Court consisting of two or more Judges any question of law which has arisen on the trial, stating in a case signed by him such question with the special circumstances upon which the same shall have arisen."
(2.) Sub-S. (2) of the same section is in these terms: "If the Judge reserve any such question the person convicted shall, pending the decision thereon, be remanded to prison or, if the Judge thinks fit, be admitted to bail, and the Supreme Court shall have power to hear and finally determine such question and thereupon to reverse, affirm or amend the judgment or to make such other order as justice may require."
(3.) At the close of the arguments before their Lordships' Board their Lordships were of opinion that the conclusion reached by the majority of the Supreme Court was erroneous and that the conviction of the appellant ought to be quashed, and they intimated that they would humbly advise His Majesty accordingly. The statement of the reasons for their decision was deferred. Those reasons their Lordships now give. The facts of the case so far as they are relevant to the matter under consideration lie in a small compass. At all material times the appellant and one W. R. Westland were trustees of the marriage settlement of H. F. Ensor Harris, and the trust property consisted of or included a first mortgage of Rs. 40,000 upon an estate called Belmont. The mortgage had been created in 1920 by one Boyagoda as part of a transaction by which he had purchased the estate from Harris. Under the settlement Harris was the beneficiary entitled to the income of the trust property.