1. The appellant Bank had instituted a suit for recovery of amounts due from the defendants respondents herein under a promissory note executed by them jointly along with their father deceased Lonan on 21-3-49 for an amount of Rs 6563-3-0. Ex P-1 is the promissory note. The defence contention was that the promissory note had been executed not for any cash consideration but to secure a liability of the second defendant to indemnify the Bank against the loss caused to it by reason of the dishonour of a cheque which the second defendant discounted while he was the Agent of the Bank at its Pazhayannur Branch. The defendants further averred that several payments had been made by the second defendant in respect of this liability and that till 10-3-58 an amount of Rs. 6690/-had been remitted by him to the Bank. According to the defendants, in consideration of these payments and of the faithful and meritorious service rendered by the second defendant to the Bank, the General Body of the shareholders of the Bank had passed a resolution on 14th May 1960 resolving to write-off the balance amount due from the defendant under the promissory note and that in view of the said resoluti