( 1 ) THIS appeal by the Central Warehousing Corporation, the 2nd defendant, is directed against the judgment and decree, passed against it and in favour of the Central Bank of India in O. S. No. 14 of 1966 by the Chief Judge. City Civil Court, Hyderabad at Secundrabad for the recovery of a sum, of Rs. 54,311-13 p. with interest at 6 % from 1-7-1966.

( 2 ) THE Central Bank of India Ltd. , the 1st respondent herein, claimed the suit amount against the 1st defendant. Gali Krishnamurthi who borrowed certain sums of money on cash Credit Kev Loan Account. The 1st defendant has edorsed several warehouse receipts including Exs. A. 53 and A. 54 obtained by him from the appellant. The claim of the plaintiff against the 1st defendant is in respect of the sums borrowed by him from the bank and in so far as the 2nd defendant is concerned, the plaintiffs claim is based on the receipts Exs. A. 53 and A, 54 given by the Warehouseman to the 1st defendant. The right to claim the value of the goods covered by Exs. A. 53 and A. 54 has accrued to the plaintiff on account of the endorsements made by the depositor, the 1st defendant in its favour. The 1st defendant was ex parte in the trial