Beasley, C.J.

1. This is an appeal from an order of Stone, J., and arises out of the liquidation of the Madras Cloth Market Ltd. The Managing Directors of the company were the firm of Callianjee & Sons, whose sole proprietor was Ramjee Callianjee. He held 5,000 fully paid up shares in the company in his own name. On 10th September 1924, he being on that date indebted to the company to the extent of Rs. 36,000, borrowed Rs. 2,00,000 from the P. & O. Bank and gave them an equitable mortgage of some of his Immovable property and the 5,000 shares already referred to as security for the loan. In 1925 the Bank filed a suit (C.S. No. 283 of 1925) against Callianjee & Sons, on the equitable mortgage obtaining a preliminary decree for sale on 4th September 1925, and a final decree on 9th October of the same year. On 22nd February 1926, the liquidation of the Madras Cloth Market Ltd., was ordered by the High Court. Upto this time no notice of the equitable mortgage had been given by the Bank to the company.

2. Such a notice was given after the company went into liquidation. On 7th October 1929, Callianjee & Sons became insolvents and the assets of that firm became vested in the Officia