1. The appellant, Govindji J. Khona, Partner in Messrs. Govindji Jevat and Co., Bombay sued the respondents, the 1st respondent being K. Damodaran, an industrialist at Cannanore and the 2nd respondent. The Cannanore Spinning & Weaving Mills Ltd.,in the Subordinate Judge's Court, Ernakulam for that the 1st respondent acting as the Managing Agent of the 2nd respondent falsely and maliciously and without any reasonable or probable cause prosecuted the appellant and 2 other persons, Sippy and Krishna Chetty, upon a charge of having conspired together and cheated him of large sums of money. The learned Subordinate Judge dismissed with costs the suit which was for recovery of Rs. 1,50,000.

2. The complex facts of which this story is made up are as follows: The appellant is a dealer in cotton, doing business at Bombay. Krishna Chetty and Sippy. describing themselves as commission agents at Coimbatore, offered to sell to the respondents certain varieties of cotton in which the appellant was dealing. On 24th May 1956, Chetty sent the letter, Ext. D-2, to the respondents inviting orders for cotton. Three types of cotton were offered for sale in that letter. One of them was Hubli J