S. D. KHARE, J. : This is a first appeal filed by the Sterling General Insurance Co., Ltd., Scindia House, New Delhi (hereinafter referred to as the Insurance Company) against the judgment and decree dated 27th November, 1954, passed by the Tribunal constituted under the Displaced Persons (Debts Adjustment) Act, 1951, 'hereinafter referred to as the Act).

2. Lala Baliali Rampuri, respondent No. 1, (hereinafter referred to as the applicant) filed an application under S. 13 of the Act against the Insurance Company and the Hindustan Commercial Bank Ltd., respondent No. 2 (hereinafter referred to as the Bank). The applicant carried on business in sugar in the year 1947 and had opened a cash-credit account with the Kasur Branch of the Bank against the security of the

sugar bags placed in the godown and hypothecated by him with the Bank. The hypothecated goods used to be stored in the godowns situate at Mianwala, Bhikkiwind and Usmanwala. An these three godowns were situate in Kasur Tahsil. However, as a result of the partition of India in the year 1947 Usmanwala passed on the Pakistan while Bhikkiwind and Mianwala remained parts of India. The allegations made in the application f