1. This is an appeal from a judgment of Mockett, J. in the Insolvency Court. The facts leading up to this appeal need only be stated very briefly. C. K. Narayana Iyer & Sons, the insolvents, were dealers in groundnuts on a very large scale. They purchased groundnuts largely in the mofussil and these were consigned to them in Madras sometimes by their vendors and sometimes by themselves. Railway receipts were, in accordance with the railway practice, issued in respect of those groundnuts. On arrival in Madras the groundnuts came into the charge of the Port Trust. It is a general rule that these should not be handed over to the consignees without the production of the railway receipts but under Section 57 of the Indian Railways Act the Port Trust can hand over the goods to the consignee after taking an indemnity bond. At that time the insolvents used to pledge the railway receipts as security for advances made to them by some of the Madras banks and it has since been held by the Privy Council in The Official Assignee of Madras v. The Mercantile Bank of India, Ltd. 1934 58 Mad 181, that a pledge of a railway receipt operates as a pledge of relative goods. On 25th June 1928, a