NIPPON MENKWA KABUSHIKI KAISHA (JAPAN COTTON TRADING COMPANY, LTD.) v. DAWSONS BANK, LTD.

(1935) 51 Ll L Rep 147

JUDICIAL COMMITTEE OFTHE PRIVY COUNCIL.

Before Lord Tomlin, Lord Russell of Killowen and Sir Lancelot Sanderson.

Bank-Conversion-Principal and agent- Estoppel-Sale of rice by S K to plaintiffs -Rice pledged to defendant bank in security for an advance-Rice in mill managed by B M (acting under general supervision of bank)-Plaintiffs given delivery order and invoice, signed by S K, countersigned "O.K., B M"-Payment made by plaintiffs to S K - Absconding of S K without having paid off bank's security-Refusal by bank to give delivery-Effect of letters "O.K."-Authority of B M -Whether bank entitled to assert its security against the plaintiffs' claim to delivery-Difference between waiver and estoppel.