Judgment

K.N. SAIKIA, J.-This defendants appeal by special leave is from the judgment of the High Court of Judicature at Madras, dated October 1, 1981 passed in Appeal No. 516 of 1977 dismissing the appeal and affirming the decree in O.S. No. 7667 of 1975.

2. The respondent - Industrial Chain Concern as plaintiff filed Original Suit No. 7667 of 1975 in the City Civil Court, Madras for recovery of Rs 26,383.49 together with interest and costs, being the total amount of loss sustained by it on account of the alleged negligence and conversion on the part of the defendant - Indian Overseas Bank having its central office at 151, Mount Road, Madras-2, hereinafter referred as the Bank, by negligently allowing one Sethuraman, Manager of the plaintiff firm at Madras, to open a fictitious account in the name of Industrial Chain Concern as its proprietor and helping him to pay in stolen drafts and cheques drawn in favour of the plaintiff and collecting the same and paying to Sethuraman the proceeds thereof and closing the account thereafter. It was the case of the plaintiff that it was doing extensive business in Steel Roller Chains and Sprockets with leading industries and government undertak