Lord Warrington of Clyffe -

On the 10th June 1925 Lee Pang Seng, the assignee of whose estate is the respondent to this appeal, transferred to the appellants, to whom he was largely indebted, a quantity of rubber as security for their debt. He was then unable to pay his debts as they became due from his own money. He was adjudged bankrupt on a petition presented within three months after the date of making the transfer. The question in this appeal is whether the transfer is to be deemed fraudulent and void as against the Official Assignee in bankruptcy.

In Singapore the matter is regulated by S. 51 (1), Bankruptcy Ordinance, which is identical with the provision on the same subject in the English Bankruptcy Act.

The result depends on the answer to be given to the question : Was the transfer to the appellants made with a view of giving them a preference over the other creditors" ?

There is no doubt about the law, this has long since been settled as regards the effect of the English statute, and it is common ground that the same principles are applicable to the ordinance in Singapore.

The question to be determined is one of fact : Was the dominant motive actuating the debtor in making th