M. Satyanarayana Murthy, J.

1. The 1st defendant in OS No. 89 of 1987 on the file of Subordinate Judge, Jagtial, filed this appeal against the impugned judgment and decree dated 4.3.1996, wherein the defendants 1 and 2 were made liable to pay Rs. 50,000/- with interest at 12% per annum from the date of suit till the date of realization. The appellant was the 1st defendant and the respondents 1 and 2 were the plaintiff and 2nd defendant before the trial Court and they will be ranked as in suit, for convenience sake and for reference.

2. The plaintiff filed the suit for recovery of Rs. 50,000/- against both the defendants together with interest contending that the plaintiff is the customer of defendant No. 1 and the bank is acting on behalf of plaintiff for both paying and receiving amount. The Registrar of Co-operative Societies appointed Inspector to inspect the books, during the inspection, mis-appropriation of amount of the plaintiff-society was noticed. On 4.11.1986 the Chief Project Manager, Rural Electrification Corporation Limited addressed a letter to the plainti