VEERASWAMI, C.J.:- This appeal against a decree of N.S. Ramaswami J. is brought by defendants 3 and 4. The first respondent-plaintiff, the State Bank of India, allowed the first defendant, a private limited Company, to draw from it on three accounts at its Pondicherry branch, Lock and Key credit account, Cash credit factory account and overdraft against bills accounts. As on 15-9-1964, the debts on these accounts respectively were Rs. 26,992-94, Rs. 30,160 and Rs. 61,707-89. On that date, the appellants became directors of the company and executed fresh documents to continue the accounts. On 9-12-1964, the three accounts were transferred to Madras as No. 1 account, as the company's headquarters had been shifted to Ambattur by then. It appears that, on 18-8-1965, there was due a sum of Rs. 2,36,762-89. On that date, a new agreement was executed for Mandy type of account and defendants 2 to 4 executed a guarantee for two lakhs of rupees. On 12-8-1966, the appellants resigned their directorship. The transactions of deposits and withdrawals, by the Company continued even thereafter until a

suit was instituted. Pendente lite goods worth about Rs. 95,000 were sold with the permis