Miller vs Phuchand and Others

W. Comer Petheram, C.J.—We think that this appeal must be dismissed. The question is, whether a transaction between certain insolvents, or persons who shortly afterwards were adjudicated insolvents, and one of their creditors, is void. The answer to this question depends on what are the proper inferences to be drawn from the facts. The facts are, that on the 12th March the insolvents suspended payment. On the night of the previous day, the 11th March, the creditor, the impending bankruptcy of the insolvents having become known, urged the latter to make over a part of their stock-in-trade as security for the debt, and to this, the insolvents consented. Now, was this a voluntary transfer? because if it were, it is void u/s 24 of 11 and 12 Vic, c. 21. All that appears is that on the 11th March security was demanded from the insolvents. There was no pressure which could not be resisted. There were no legal proceedings against the insolvents existing, nor could they have feared any, as they must have known that on the following day they would stop payment. Under these circumstances, we are of opinion that the transfer was a voluntary one.