Voidable insolvency transfer and mesne profits: lawful possession continues until annulment, barring recovery for the earlier period.

A transfer voidable under Section 53 of the Provincial Insolvency Act remains effective until it is annulled by the court, so the transferee's possession is lawful up to that date. Because liability for mesne profits depends on wrongful possession, profits could not be claimed for the period before annulment. Authorities dealing with transfers void from inception, or situations where prior setting aside was unnecessary, were distinguished as inapplicable. The claim for mesne profits from the earlier date therefore failed.

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Issues: Whether transferees under a transfer annulled under Section 53 of the Provincial Insolvency Act were liable to account for mesne profits from the date they entered into possession or only from the date on which the transfer was annulled.

Analysis: Section 53 made the impugned transfer voidable as against the receiver and capable of annulment by the Court. Until such annulment, the transfer remained effective and the transferees held possession under a valid title. Liability to account for mesne profits arises only when possession is wrongful, and possession under a transfer which has not yet been annulled is not wrongful. Authorities concerning transactions void from inception or cases where no prior setting aside was required were distinguished as inapplicable.

Conclusion: The transferees were not liable to account for mesne profits before the date of annulment, and the claim for profits from the earlier date failed.

Ratio Decidendi: A transfer that is voidable under Section 53 of the Provincial Insolvency Act remains effective until annulled, so the transferee's possession is lawful until that date and mesne profits are not recoverable for the prior period.

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