( 1 ) MESSRS. Standard Chartered Bank, the plaintiff, filed a suit for recovery of Rs. 2,78,37,801. 20 under Order 37 Civil Procedure Code against Mr. M. S. Handa, Mr. Ashwani Kapoor and Indian Overseas Bank. In brief the facts of the case as are apparent on record are that Mr. M. S. Handa is the drawer of Bill of Exchange No. HK/1 dated 23. 6. 1989. Defendant No 2, Mr. Ashwani Kapoor is the acceptor and Defendant No. 3, Indian Overseas Bank is the co-acceptor of the said Bill of Exchange (Hundi ). The said Bill of Exchange was duly discounted by the plaintiff bank by issue of a Reserve Bank of India cheque for Rs. 4,75,62,500. 00 favouring Indian Overseas Bank, defendant No. 3, and by crediting a sum of Rs. 5,17,295. 00 into the account of defendant No. 1. Before the maturity date of payment upon the said Bill of Exchange i. e. on September 20,1989 the plaintiff bank received a letter dated 3rd August, 1989 from the defendant No. 3 s Zonal Office that the Branch Manager of Indian Overseas Bank. who had co-accepted the said Bill of Exchange (Hundi) had no authority to do so and therefore, they had no liability towards the plaintiff bank on the said co-accepted Hundi