TaxTMI 
TaxTMI 
1937 (1) TMI 9
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....e Company wrote to these creditors setting out the terms upon which they were prepared to hire out a film and the letter concludes: "If you agree to the above condition, send us a deposit of Rs. 1,000 immediately." Instead of Rs. 1,000, only a sum of Rs. 250 was sent on the 19th September 1935. The Company by letter intimated to the creditors that it was unable to conclude the agreement for hiring the film. This Rs. 250, it appears from the correspondence and from the books of the Company, was entered into a suspense account to the credit of the Royal Talkies. Applications for payment were made on many occasions but the Company failed to repay this sum. At the date of the winding up order of the Company, there was in the credit of the Comp....
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....tract which was contemplated would come into existence, between the parties. There was never any contract and therefore the moneys paid remained the moneys of the creditor. I have been referred to Official Assignee of Bombay v. Abdul Hajee (58 Bom. 67) a case in which a sum of Rs. 1,000 was paid to a firm subsequently becoming insolvent by way of deposit in contemplation of the payer entering into a service agreement with the payee, the sum paid being the contemplated sum by way of fidelity guarantee. No agreement was ever concluded and in that case it was held by Wadia, J., that the payees were the trustees of payers in respect of that money. His decision went on appeal and whilst approving of his view it was reversed upon another point wh....