M V MAHALINGA AIYAR Vs. UNION BANK, LIMITED

JUDGEMENT

(1.) This suit was brought in 1938 by the Union Bank, Limited, Kumbakonam, against a number of defendants of whom the case of the 1 defendant only need now be considered. It was based upon a promissory note signed by one V. E. Srinivasan on the 21 August, 1935, and signed also by the 1 defendant V. M. Mahalinga Aiyar. That promissory note is for Rs. 8,500 and both the executants bind themselves jointly and severally to pay the bank that sum with interest. The figure Rs. 8,500 is found at the top left hand corner of the promissory note and above it are the words in English, the whole of the promissory note being also in English, "security for overdraft". It is the case of the bank that at that time V. R. Srinivasan who was the managing director of the bank had an overdraft account. It was necessary for all persons having overdraft accounts to have a coobligant. The previous coobligant, Swaminatha Aiyar, had virtually become insolvent, and it was therefore necessary for V. R. Srinivasan to find some one else. He accordingly induced the 1 defendant to join with him as co-obligant in the signing of this promissory note. In 1937, V. R. Srinivasan fell upon evil days and on the 7th February executed a trust deed putting all his property in the hands of trustees for the purpose of satisfying his creditors. As V. R. Srinivasan thus failed, the bank is proceeding against the 1 defendant in this suit. There is no dispute that the amount of the claim is correctly calculated, and is due on the state of V. R. Srinivasan's overdraft account. The 1st defendant raised many defences all of which have been rejected by the learned Subordinate Judge and the suit has been decreed. As a result the 1 defendant has filed this appeal.

(2.) The first question which arises is a question of fact. The 1 defendant denies that he executed any promissory note for Rs. 8,500 and denies that he executed any document as security for any overdraft. .....

(3.) [After discussing the evidence his Lordship concluded : ]