Alfred Henry Lionel Leach, C.J.

1. The appellants appeal from a decree passed by the Original Side of this Court awarding the respondent damages for malicious prosecution. The first appellant carries on business in edible oils in Bombay and has a branch office in Madras. The Madras branch was opened in the month of January, 1933 and the respondent was placed in charge of it. At the end of August, 1933, the respondents services were dispensed with and on the 22nd October, 1933, the second appellant became the manager of the Madras branch. On the 31st October, 1933, the second appellant received a visit from one Subramaniam Chetty and a broker named Murthi. It is common ground that Murthi had acted as the broker in transactions with the first appellants Madras branch during the period the respondent was in charge of it. Murthi represented to the second appellant that Subramaniam Chetty was a big merchant carrying on business in Mambalam, Madras, and on the strength of his recommendation the second appellant agreed to sell to Subramaniam Chetty 75 cases of edible oils at the price Rs. 14-8-0 per case, payment to be made in three days time. The contract having been entered into