P. Janaki Amma, J.

1. The appeal is against a decree for money based on a policy of fidelity insurance, passed in favour of the Federal Bank Ltd., Alwaye, represented by its Managing Director. The appellant; who was the first defendant in the concerned suit is the Ruby General Insurance Company Ltd., Calcutta (for short the Company), which has got a branch office at Mattancherry, Cochin. Defendants 2 and 3 were employees of the Federal Bank Ltd., Alwaye, at the relevant time. They stand at present discharged from their jobs in the Bank and are employed elsewhere. The first defendant, had a scheme of insurance styled as "Policy Number Bankers (in and out) 112". On 17th October 1962, the plaintiff took a policy paying Rs. 5,493 as premium, and by virtue of the said policy the first defendant undertook to make good to the bank all direct losses to the extent of rupees one lakh that the Bank might during the space of 12 calendar months from the noon of the 4th August 1962 to the noon of 3rd August 1963, discover to have sustained in the manner set forth in Clause.1 to 4 of the policy. The policy is marked Ext. A-1 in the case.

2. The suit was in respect of a claim made by the pla