Judgment

CHINNAPPA REDDY, J.:- The defendant in the action is the appellant in this appeal by special leave. The respondent-plaintiff is the Indo Commercial Bank ltd., Madras, now taken over and represented by the Punjab National Bank. We will hereafter refer to the plaintiff as the Bank. In 1943 Kawasji Karanjia and Jal Karanjia and C. B. Samual husband of the defendant, floated a company known as the Modern Hindustan Food Products Ltd. at Poona. Jal Karanjia, C. B. Samual and the defendant were Directors of the Company. The Company opened a current account with the plaintiff bank in 1943 which was later converted into an overdraft account with the maximum limit of Rs. 25,000/-. By a subsequent arrangement dated 19th June, 1944, the limit of the overdraft was raised to Rs. 10 lacs. C. B. Samuel, as Managing Director of the Company, executed a promissory note for Rs. 10 lacs and he and his wife Margaret Samuel (defendant) executed a guarantee Bond (Exhibit 57) by which they jointly and severally guaranteed to the bank the repayment of all money which shall at any time be due to the Bank from the Company on the general balance of their accounts with the bank, or any account whatever.