The Imperial Bank Of India – Appellant
Versus
V. P. Avanasi Chettiar – Respondent
1. The plaintiff is the appellant. This appeal arises out of a suit filed by the plaintiff to recover Rs. 10,053-1-0 with further interest and costs claimed to be due in respect of a guarantee by the defendant guaranteeing payment of the sums that may be due by a firm which carried on business in the name of N. Nanchappa Chettiar. It is stated in the plaint that one N. Nanchappa Chettiar and two others, N. Krishnappa Chettiar and T. N. Krishnappa Chettiar, were carrying on business in partnership under the name and style of N. Nanchappa Chettiar at Olavakkod, that this firm required an overdraft to the extent of Rs. 10,000 and that this transaction was put through by the Bank on the guarantee of the defendant. The form that the guarantee took was the execution of a promissory note in favour of the firm by the defendant for Rs. 10,000 on the 15th March, 1923, the endorsement of the note to the Bank and the passing of a letter on the same date in which the terms of the guarantee are set out.
[Their Lordships set out the contentions of the parties, discussed the evidence and continued.]
2. The first question is whether in respect of these three promissory notes the Bank was enti
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