1. The petitioners in the court below are the appellants. This appeal arises from a claim preferred by the appellants in the winding up by court of the Seetharam Spinning and Weaving Mills Ltd., Trichur (in liquidation). The claim was for Rs. 42,209/- and interest amounting to Rs. 2,699 8 0. The Seethararn Spinning and Weaving Mills Ltd., hereinafter called the Mills, had entered into a contract with Messrs. Mohammed Sheriff and K. A. Palaniswamy & Co., Tiruppur for the purchase of 152 bales of certified Uganda cotton at Rs. 1, 200/- per candy, f. o. r. Trichur. The terms of the contract can be gathered from the correspondence between the parties. Ext. P.2 is a letter sent by the Mills to Messrs. Mohammed Sheriff and K. A. Palaniswamy & Co. and that is dated 2nd May 1953. In their reply dated the 4th May 1953 to the Mills M/s. Mohammed Sheriff and K. A. Palaniswamy & Co., have stated that M/s. Sri Krishna Ginning Factory, Sattur, will be despatching the 152 bales of cotton on their behalf and that 65 per cent of the value of the goods will be drawn through the bank against the R. R. and the balance of 35 per cent by Hundi. In pursuance to the contract, two consignments