Judgement

Appeal (No. 67 of 1939) from a decree of the High Court in its appellate jurisdiction (May 9, 1938) which reversed a decree of that High Court in its ordinary original civil jurisdiction (March 27, 1936).

In the action out of which this appeal arose the plaintiff (respondent No. 1), P. L. N. K. M. Nagappa Chettiar, sued in his capacity as trustee to recover from the appellant bank (the first defendant), O. RM. O. M. SP. (firm), trust moneys allocated to two charities which he alleged that the appellant bank had wrongly applied in reduction of a debt (overdraft) owed to the bank by the second respondent, P.

L. N. K. Subrahmanyam Chettiar, the paternal uncle of the plaintiff and co-trustee with him. The plaintiff and his uncle were Nattukottai Chettiars, and the uncle had had authority from the plaintiff to invest the trust moneys in his own business. The plaintiff alleged that his uncle had been guilty of breach of trust in utilizing the moneys in discharge of his overdraft, and he sought to make the appellant bank liable to refund to the charities the money received by it in reduction of Subrahmanyams overdraft on the footing that that application of the money was a breac