K R KESAVAN Vs. SOUTH INDIAN BANK LTD

JUDGEMENT

(1.) This is an appeal by the defendant against the decision of our learned brother, Yahya Ali J., dismissing the appeal preferred against the order of the Master.

(2.) The respondent to this appeal is the South India Bank Ltd., which instituted a suit C. S. No. 480 of 1947, for recovery of a sum of Rs. 10310-10-0 from the defendant. The suit was instituted under summary procedure provided under 0rder 7, Rule 6, Original Side Rules and under 0rder 37, Rule 2, Civil P. C. The claim was based on a cheque for a sum of Rs 10,000 dated 12th April 1947 drawn by the appellant on the Indian Bank Ltd., Thyagarayanagar, in favour of one K. C. M. C. Bathnasabapathi Nadar and Sons. The drawee of the cheque negotiated if to the plaintiff Bank and it was alleged in the plaint that it was endorsed to it for valuable consideration and that the plaintiff is a holder in due course. The cheque was presented to the Indian Bank by the plaintiff but it was dishonoured on 16th April 1947. The plaintiff, therefore, claims that he is entitled to recover the Suit amount from the defendant on the basis of the negotiable instrument.

(3.) As the suit was filed under summary procedure, the defendant had to obtain leave to defend the suit under 0rder 7, Rule 6, Original Side Rules and for this purpose he made an application to the Master, Appln. No. 3010 of 1947. The main defences raised by him in that application were that the plaintiff was not a holder in due course as there was no consideration for the endorsement and secondly that the plaintiff had no cause of action to sue for the recovery of the amount as no notice of dishonour was given to the defendant, until 26th May 1947 which according to him was wholly an unreasonable notice as considerable time had elapsed from the date of dishonour.