Subramonian Poti, J.

1. These are appeals from the same decree passed in O.S. No. 51 of 1967 of the Sub Court of Parur. A.S. No. 733 of 1974 is an appeal by the 10th defendant, the Union of India, representing the Southern Railway Administration and A.S. No. 737 of 1974 is by defendants 1 to 7, the first defendant being a firm and defendants 2 to 4 being partners thereof. The suit was for recovery of money. The first defendant firm, M/s Pareed Pillai and Brothers, of which the Managing Partner was the second defendant was carrying on business in cocoanut oil. The activity of the firm consisted mainly of exporting cocoanut oil from the State to places in India outside the State. The plaintiff in the suit is the Federal Bank Limited with its Head Office at Alwaye. The first defendant firm also had its office at Alwaye. The firm and its partners defendants 1 to 4 were availing of banking facilities with the plaintiff bank from the very commencement of their business, one an overdraft account with a limit of Rs. 50,000 and the other a documentary bills accounting faci