C ASSIAMMA Vs. STATE BANK OF MYSORE

JUDGEMENT

(1.) 2nd defendant in O. S. No. 16 of 1977 on the file of the Court of Additional Sub Judge, Parur is the appellant in this appeal.

(2.) The above suit was filed by the 1st respondent herein for recovery of money. 1st defendant is a partnership firm run under the name and style 'M/s Hilal Traders' and constituted under Ext. A1 partnership deed dated 1st October 1969. Its partners are defendants 2 and 3. Defendants 2 and 3 executed Ext. A2 power of attorney dated 1st October 1969 in favour of the 4th defendant to manage the affairs of the firm. The firm was carrying on business in arecanuts and hill produces.

(3.) 1st defendant represented by its partners defendants 2 and 3 and acting through the power of attorney holder the 4th defendant, requested plaintiff - Bank in 1969-70 to extend financial assistance to. it. Defendants agreed to execute necessary documents and to give proper security. Defendants 2 and 3 also informed the Bank of the power of attorney given by them in favour of the 4th defendant authorising him to do all acts necessary for the management of the affairs of business of 1st defendant firm including operation of all accounts standing in the name of the firm.