Judgment-

RAMASWAMI

( 1 ) THIS appeal by certificate is brought on behalf of the 3rd defendant against the judgment and decree of the High Court of Kerala dated 18/07/1962 in A. S. No. 561 of 1961 which affirmed the judgment and decree of the Court of the Subordinate Judge of Alleppey in O. S. No. 114 of 1957.

( 2 ) BY a resolution Ex. BD dated 25/11/1946 the Board of Directors of the 1st defendant Company authorised the 2nd defendant to obtain financial accommodation from the plaintiff-bank to the extent of Rs. 15 lakhs under different kinds of loans. Pursuant to this resolution the Company by its letter Ex. DE dated 26/11/1946 asked for accommodation for Rs. 1 lakh under clean overdraft, for Rs. 4 lakhs under open loan and for S. 10 lakhs under out agency and key loans. On 26/11/1946 all the three defendants executed a promissory note Ex. B in favour of the plaintiff-bank for a sum of Rs. 4 lakhs. The promissory note was sent to the plaintiff-bank along with a letter Ex. A styled letter of continuity dated 26/11/1946. Ex. A reads as follows :

"alleppey, 26/11/1946.

THE Agent,

THE Central Bank of India Limited, Alleppey.

DEAR Sir,

WE beg to enclose an on demand pro note p. Rs. 4,00,000