NIPPON YUSEN KAISHA v. RAMJIBAN SEROWJEE.

(1938) 60 Ll.L.Rep. 181

JUDICIAL COMMITTEE OFTHE PRIVY COUNCIL.

Before Lord Wright, Lord Romer, Lord Normand, Sir L. Sanderson, and Sir Shadi Lal.

Bill of lading-Mate's receipts-Issue of bills of lading without production of mate's receipts-Purchase of gunnies by respondents from mills-Resale by respondents to Export Company - Delivery free alongside export vessel -"3. Payments to be made in cash in exchange for . . . mate's receipts (which . . . mate's receipts are to be handed by . . . ship's officer to the sellers' representatives). 4. The buyers hereby acknowledge that so long as such . . . mate's receipts (whether in sellers' or buyers' name) are in possession of the sellers, the lien of the sellers, as unpaid vendors, subsists both on such . . . mate's receipts and the goods they represent until payment in full" - Freight engaged by Export Company with appellant steamship company and shipping instructions given by Export Company to respondents-Instructions passed on by respondents to mills - Goods tendered by mills to ship with request: "Please receive on board from the above mills the undernoted goods shipping documents for which have been taken out in the name of [Export Company] and hand the mate's receipts to our sircar"-Mate's receipts handed to mills' representatives

in following terms: "Received on board . . . for conveyance to Kobe from [Export Company] the undermentioned goods subject to the terms and conditions of the company's bills of lading"-Bills of lading issued by appellants to Export Company in exchange for letter of indemnity - Tender of mate's receipts by respondents to Export Company-Default in payment by Export Company - Notification immediately given by respondents to appellants that they (respondents) had an unsatisfied lien for the price and that bills of lading must not be issued by appellants until mate's receipts were handed to them (appellants)-Goods by that time resold by Export Company to Japanese purchasers, delivery having been given by appellants to bill of lading holders-Claim by respondents against appellants-Liability of shipowners to holders of mate's receipts- Conversion-Passing of property.