Viscount Haldane:-

This is an appeal from a judgment of the Supreme Court of Ceylon. The question is whether the respondents were entitled to recover from the appellants the whole or part of a sum of Rs. 1,45,860, being the aggregate of the amount of four cheques, drawn by one Williams as the respondents" manager, in favour of the appellants.

The facts of the case are shortly these : The appellants are partners in the firm of E. John and Co., carrying on business as share and produce brokers in Colombo. The respondents are a company incorporated and registered in England, and carrying on business as import and export merchants at various places, including Colombo, through branch offices. Williams had acted as their manager of that branch since 1905. He held a power of attorney which enabled him to conduct the business of the respondents at Colombo, and for that purpose conferred on him wide powers, including the drawing of cheques on their bankers. The respondents had transacted business with the appellants, relating in the main to the purchase and sale of produce. The latter had in their books an account with the respondents, and they had also opened a separate account with Williams