Alfred Henry Lionel Leach, C.J.

1. This appeal raises a question with regard to the meaning of Section 109 (1) (e) of the Indian Companies Act. On the 5th February, 1938, the appellant placed with the Madras Peoples Bank, Limited, a sum of Rs. 3,000 on fixed deposit for the period of one year. The Bank did not repay the money when it fell due and it was agreed that it should be redeposited, but that the amount should be split up into four sums of Rs. 500 each and one of Rs. 1,000, repayable on the 10th April, 25th April, 10th May, 25th May and 5th June, 1939, respectively. Being in financial difficulties the Bank was not able to repay any of these sums on the due date, but offered to indorse five promissory notes to the appellant as security for its indebtedness to him. The appellant agreed to this course and the terms of the arrangement were embodied in a document which was duly executed, but it was not registered with the Registrar of Joint Stock Companies.

2. On the 2nd November, 1939, this Court passed an order for the compulsory winding up of the Bank. The promissory notes indorsed to the appellant were of the aggregate face value of Rs. 4,476-13-3. They had been execute