JUDGMENT

PATHAK, J.:— These appeals by certificate granted by the Additional Judicial. Commissioner of Goa, Daman and Diu arise out of suits for the recovery of loans made to the appellants at various branches of the Banco Nacional Ultramarino in Goa during Portuguese rule.

2. The territories of Goa, Daman and Diu constituted the Estado de India of the sovereign State of Portugal. The Banco Nacional Ultramarino (the National Overseas Bank) with its Head Office at Lisbon in Portugal, carried on banking business in Goa at different Branches, some of them being situate at Vasco Da Gama, Margao and Panjim. It was also a currency issuing Bank and discharged the functions of a Government Treasury. It issued Portuguese currency notes in Goa, and its banking capacity it received deposits and granted loans.

3. On December 20, 1961 the territories of Goa. Daman and Diu were liberated from Portuguese rule and integrated with India. On the eve of the transfer. of power the Banco Nacional Ultramarine closed its Branches at Goa and removed a substantial portion of the valuable assets held there to its Head Office at Lisbon and to other places overseas.

4. To provide for the administration of the liberated territories the President of India promulgated the Goa, Daman and Diu (Administration) Ordinance, 1962 which on March 27, 1962 was replaced by the Goa, Daman and Diu (Administration) Act. 1962 enacted by Parliament. By virtue of subsection (1) of Section 5 of the Act all laws in force immediately before "the appointed day" December 20, 1961) in Goa, Daman and Diu were to continue to be in force therein until amended or repealed by a competent legislature or other competent authority.

5. The closure of the Branches of the Banco Nacional Ultramarino at Goa gave rise to considerable confusion. It was necessary to take measures for the exchange of over nine crore rupees worth of Portuguese currency notes for Indian currency, and likewise to provide for the repayment of moneys and the return of valuables deposited with the Branches. As the Banco Nacional Ultramarino had closed those Branches no one could operate on them. To relieve the common confusion and distress, the President of India promulgated under Art. 240 of the Constitution, the Goa, Daman and Diu(Ranks Reconstruction) Regulation, 1962 (hereinafter referred to as "the Regulation"). Section 3 declared that in view of the closure of the branches and the transfer of a substantial portion of their assets out of India on or about the "appointed day" and difficulties experienced by depositors, the Branches would, as from that day be reconstructed in the interests of the general public in accordance with the provisions of the Regulation. An examination of the provisions which follow shows that the Branches were integrated into a fully constituted Bank independent of the Banco Nacional Ultramarino, the purpose being to dispose of the business pending on December 20, 1961, with no fresh business being undertaken, and its functions being confined to the discharge of existing liabilities and the recovery of existing debts and other assets with a view to the ultimate winding up of the Bank. A Custodian was appointed by the Central Government to take charge of the Bank. The properties and assets as Well as the obligations and liabilities of the Bank stood transferred to and vested in him, and he was empowered to realise any debts or other amounts due to the said Branches including any debts or other amounts due from the Head Office of the Banco Nacional Ultramarino.

6. On March 30, 1963, the Custodian filed a suit in the Court of the Civil Judge at Ilhas, Panaji against the Agencia Commercial Internacional, its managing partner. Jose Antonio Gouveia and his wife Geraldina Pereira Gouveia, alleging that the branch of the Banco Nacional Ultramarino at Panaji had, pursuant to a request of the Agencia, opened a current account in its favour up to the limit of Escudos 300.000$00 for three months renewable