1934 Present: Garvin S.P.J and Akbar J.

TARRANT et al. v. MARIKAR.

340-D. C. Colombo, 43,262.

    Wagering contract-Contract for sale of rubber-Agreement to pay the difference between contract price and market price-Bond granted to secure payment of the amount of the difference-Contract unlawful under the Roman-Dutch law-Action on bond not maintainable-Injusta causa-Contract governed by Roman-Dutch law.

Where the plaintiffs and the defendant had entered into certain contracts for the sale and purchase of rubber on the understanding that there was to be no delivery of the rubber and that the contract was to be performed by the payment of the difference between the contract price and the market price, and where a bond was granted by the defendant to the plaintiffs at their request to secure the repayment of the amount of the differences which remained unpaid by the defendant on the contracts,-

Held, that the agreement was in the nature of a wagering contract which was unlawful under the Roman-Dutch law, and that no action was maintainable on the bond.

Under the Roman-Dutch law a promise to pay a wager secured by the hypothecation