Veeraswami, C.J. — The plaintiff is the appellant. The suit is to recover Rs. 90,750 with interest and, in default of payment, for the sale of the properties described in the plaint schedule, and, if the sale proceeds are not sufficient, for a personal decree against defendants 1 and 2 for the balance of the amount due. The first defendant and the second defendant are the wife and daughter of late Dr. R. M. Alagappa Chettiar and the third defendant is a company incorporated in the Kerala State. The case of the plaintiff is that in the course of the business of the plaintiff, and at the order and account of Dr. Alagappa Chettiar, the plaintiff constructed inter alia, the buildings namely (1) Guest House in Gangadhareswarar Koil Street, Purasawalkam, Madras and (2) a group of buildings known as ‘ ‘Alagappa Nagar buildings" in Alagappa Nagar, Madras. These constructions were completed in 1948 and, in respect of the former constructions, Dr. Alagappa Chettiar owed the plaintiffs a sum of Rs. 72,899 14-3 and in respect of the latter, a sum of Rs. 81,519-5-7. The total amount comes to Rs. 1,54,419-3-10. The plaintiffs further case is that Dr. Alagappa Chettiar was the promoter of the third defendant company and he was a Director and Chairman of the Board of Directors, its Managing Agents being Messrs. Ramlal and Company, Limited, of which, he was also the Managing Director. He had also promoted another limited liability company under the name of "Alagappa Estates Limited " of which Sri K. P. M. Ramanathan was the Director. One Rm. Kasi Viswanatha Chettiar, the brother-in-law of Dr, Alagappa Chettiar, was indebted to the plaintiff in the sum of Rs. 1,92,500, and the Alagappa Estates, referred to above, had guaranteed the due payment thereof to the plaintiff. The two sums of Rs.72.899-14-3 and Rs. 81,519-5-7 which Dr. Alagappa Chettiar owed personally to the plaintiff and the sum of Rs.1,92,500 payable by Kasi Viswanatha Chettiar and guaranteed by Alagappa Estates Limited, remained outstanding in September, 1950. At the instance of the plaintiff, on 2nd September, 1950, the Alagappa Estates, Limited. Dr. Alagappa Chettiar and the third defendant deposited with the plaintiff, by way of a pledge, the shares they respectively held in the plaintiff’s company (Limited) namely 208 preference shares for the face value of Rs. 20,800 held by Alagappa Estates Limited, along with 4,490 ordinary shares at the face value of Rs. 44,900 held by Dr. Alagappa Chettiar in his personal name, 38 ordinary shares of the face Value of Rs. 3,80,000 held by the third defendant as security for due repayment of the aforesaid three sums and interest thereon. The plaintiff’s further case is that Dr. Alagappa Chettiar also deposited on 2nd September, 1950 the title deeds of the guest house property with intent to create a charge in favour of the plaintiff for all the said sums due to the plaintiff. The payments were received by the plaintiff from time to time, in respect of the above three liabilities, and, by February, 1954, the balance due under the three sums were (1) guest house account Rs. 31,602, (2) Alagappa Nagar buildings account Rs. 52,436 and (3) Kasi Viswanatha Chettiar’s account Rs. 27,855. Further construction was done by the plaintiff at the instance of Dr. Alagappa Chettiar, and, two further sums of Rs. 14,781 and Rs. 9,758 were also due to the plaintiff. The result was that on 21st February, 1954 the total amounts due in respect of the first three accounts and the further two items, amounted to Rs. 1,36,432. On 21st February, 1954 Dr. Alagappa Chettiar executed a promissory note for the total sum of Rs. 1,36,432 promising to pay the sum with interest at 6 per cent. per annum and, on the same day, he passed a letter to the plaintiff agreeing that the title deeds of his property already deposited with the plaintiff will remain as collateral security for the amount due under the promissory note until it is fully discharged. All amounts due on Kasi Vi

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