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 perferred against the order of the Master.

(2.) The respondent to this appeal is the South Indian Bank, Ltd., which instituted a suit, C. S. No. 480 of 1947, for recovery of a sum of Rs. 10,310-10-0 from the defendant. The suit was instituted under summary procedure provided under Order 7, Rule 6 of the Original Side Rules and under Order 37, Rule 2 of the Civil Procedure Code. The claim was based on a cheque for a sum of Rs. 10,000 dated 12 April, 1947, drawn by the appellant on the Indian Bank, Ltd., Thyagarayanagar, in favour of one K.C.M.C. Rathnasabapathi Nadar and Sons. The drawee of the cheque negotiated it 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 16 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 Order 7, Rule 6, Original Side Rules and for this purpose he made an application to the Master, Application 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.