JUDGMENT

Chatterjea, Ag. C.J.

1. This appeal arises out of certain insolvency proceedings under the following circumstances:

2. The insolvents, Mogi & Co., carried on business in Japan and several other branches in various parts of the world. They banked with the appellants, the Yokohama Specie Bank Ltd., in the latter's branches at each place.

3. The respondents Messrs. Curlender & Co., obtained a decree against Mogi & Co. for one lac 84 thousand rupees on the original side of this Court and obtained an order for attachment before judgment of their assets in Bombay. The Yokohama Specie Bank (who may be referred to as "the Bank") claimed a lien on the goods attached under a deed of hypothecation dated the 14th July 1920, and the claim was allowed.

4. On the 10th February 1921, Mogi & Co. were adjudicated insolvents at the instance of Gurlender & Co.

5. After the adjudication, the Official Assignee obtained a declaration that the deed of hypothecation referred to above was invalid as against him, and the Bank was directed to account for the dealings with the goods.

6. It appears that before the adjudication, the general creditors of Mogi & Co. in Japan appointed a Re-adjustment Committee c