Judgment

RAMASWAMI, J. : This appeal is brought, by special leave, from the judgment of the High Court of Kerala dated September 11, 1963 in Appeal Suit No. 444 of 1960.

2. On February 27, 1956 respondents to 8 to 6, as partners of respondent No. 2 firm, entered into an agreement with the then Travancore Forward Bank Ltd. undertaking to open in the books of the Bank at Ernakulam a Cash Credit Account to the extent of Rs. 1,00,000 to remain in force until closed by the Bank and to be secured by goods to be pledged with the Bank. The said respondents also agreed that, if they failed or neglected to repay the Bank on demand the amount due to the Bank, it shall be lawful for the Bank, without any notice to them, to sell or otherwise dispose of all securities, either by public auction or by private contract and to apply the net proceeds of such sale towards the liquidation of the debt. It was also agreed that if any balance was still left the Bank shall be at liberty to apply any other money in the hands of the Bank standing to the credit of the said respondents towards repayment of the debt. The agreement between the Bank and the said respondents is Ex. P1. By Clause 2 of the document th