Krishnaswami Ayyangar, J.

1. The appellant in this appeal was defendant 5 in the suit out of which it has arisen. He is the assignee of a mortgage decree obtained by defendant 3 on a mortgage executed on 6th July 1934 by defendants 1 and 2 over the property known as the South India Bone Mills at Samalkot. The property comprised land as well as the plant and machinery installed thereon for the manufacture of bone meal. The mortgagors were the owners of three other mills also with which however we are not concerned in this appeal. Prior to the execution of the mortgage aforesaid, the mortgagors had on 16th November 1933 entered into an agreement with plaintiffs 2 to 4 who were carrying on a business under the name of the Northern Circars Fibre Trading Company, Coconada , which was plaintiff 1 in the suit. By this agreement defendant 2 who was doing business in the name of C. Raju, Import and Export Company, Coconada, impleaded as defendant 1 to the suit, entrusted the management of his several mills to plaintiff 1 for a period of two years. The Northern Circars Fibre Trading Company, who were thus entrusted with the management, undertook amongst others to invest a sum of Rs. 2