1937 (1) TMI 18

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.... 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 and 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. 2. At the date of the winding up order of the Company, there was in the credit of the Company's account at the bank a sum of approximately Rs. 1,100 and there is no ev....

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.... 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 AIR 1933 Bom 437, 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 the payers in respect of that money. His decision went to appeal and whilst approving of his view it was reversed upon another point which was not argued before the learned Judge in ....