Ramaprasada Rao, J.-The controversy in this appeal is due to conflicting claims made by the Indian Bank, Madras and the Canara Bank, Madras, both of which are as on date nationalised banks. Manasuba and Co., (P.) Ltd., (in liquidation), was admittedly functioning under the managing directorship of one C. V. Raman who, as is not disputed before us, was the ace-mover of this company and the author of the various transactions in which this company was involved. It is common ground that on representations which ultimately turned out to be false and fraudulent, the managing director, C. V. Raman who was dealt with under the criminal law borrowed almost simultaneously on the hypothecation or pledge of the same goods in the same godown from both the banks as above. The modus operandi by which the managing director was acting was noticed by this Court in an earlier case reported in Official Liquidator v. Commissioner of Police1, and it is unnecessary to recapitulate the misconduct of the said managing director in the matter of borrowing on behalf of the company and on representations which were ultimately found to be false and false to his knowledge. In fact, he has forged the signatures o

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