Madhavan Nair, Officiating, C.J.

1. This is an appeal against the order of Gentle, J., confirming the order of the Master giving the appellant (defendant in C.S. No. 167 of 1937) leave to defend on his furnishing security for a sum of Rs. 25,000 within a period of two months from the date of his order. The security has not been furnished. The appellant contends that leave to defend the suit should have been given to him unconditionally.

2. The circumstances are these. The respondent (plaintiff) is the South India Industrials, Ltd. The suit has been filed by; its Managing Director. The appellant is another Managing Director. The claim against the appellant is for a sum of Rs. 2,83,878-6-11 - the amount overdrawn by him from the company previous to the year 1928. There is no contest regarding this amount owing by the appellant to the company. In defence, the appellant raised various contentions, the most important of which is that the suit has not been filed with proper authority, inasmuch as the plaint purports to be signed by the Managing Director. His case on this point is that there is nothing to show that he has been properly authorised to file the suit on behalf of the co