N. SATHISH KUMAR, J.

1. Aggrieved over the judgment and decree of the learned Additional District and Sessions Judge, Fast Track Court No. III, Madurai in decreeing the suit as prayed for, the present appeal came to be filed by the first defendant. For the sake of convenience the parties are arrayed as per their own ranking before the Trial Court.

2. The brief facts of the plaintiff case is as follows;-

The plaintiff is a reputed exporter of textiles and was doing business and the plaintiff is a 100% export oriented unit and he was maintaining current account with the first defendant. The first defendant also extending credit facilities to the plaintiff on valuable security. In spite of excellent business and prompt payments, timely financial assistance and service of the first defendant is not forthcoming. In the month of May 1996, the plaintiff has received export orders worth more than US$ 2,00,000. As the timely financial assistance from the first defendant was not forthcoming, the plaintiff had to look for financial assistance from other sources.

(ii) The second defendant had offered to help the plaintiff by giving a loan of Rs.11,00,000/- and informed that he had a fixed deposit in his daughters' name in Bangalore and that he would close the same prematurely and then, offer the loan to the plaintiff. Accordingly, the second defendant brought demand draft drawn at Union Bank of India, in favour of his daughters and opened saving account as the guardian of his daughters with the first defendant bank. The second defendant as natural guardian gave a hand written letter to the first defendant to transfer the amount of Rs.11,00,000/- to the current account of plaintiff from the saving bank account opened by the second defendant in the name of his daughters. Accordingly, Rs.11,00,000/- finance was given by the second defendant, which was transferred to the plaintiff's current account. Thereafter, the plaintiff also used that amount to make payment to the suppliers in Karur. After that the plaintiff has repaid the above said loan to the second defendant between July 1996 and August 1996 totaling a sum of Rs.11,35,000/- by way of cheques and cash. Thereafter, also the plaintiff availed some financial assistance from the second defendant. At that time, the second defendant expressed his desire to become a partner in the plaintiff's business, which was declined by the plaintiff. Therefore, the second defendant has asked for more interest than the agreed rate of interest. Thereafter, a negotiation took place in the presence of well wishers. Accordingly, the plaintiff has paid a sum of Rs.2,05,000/- extra to the second defendant by way of cheque on 30.11.1997. The second defendant also issued a receipt to the plaintiff to that effect. The second defendant turned hostile towards the plaintiff due to disappointment of not being able to become a partner.

(iii) After sometime in the year 1998, the second defendant appears to have sent a false complaint to the first defendant bank stating that the 3 demand drafts drawn in favour of his daughters were fraudulently encashed and that amount was not credited to true owners. The first defendant bank without permission of the plaintiff started acting in connivance with the second defendant and debited the plaintiff current account with Rs.12,10,000/- without any authorization. The above debit was made without written permission of the account holder. Due to unauthorized and illegal debit made by the first defendant, the plaintiff was put to hardship resulting cancellation export orders and his cheque for a sum of Rs.2,00,000/- was also dishonoured by the first defendant. Due to such dishonour of cheque, the goodwill which was put up by the plaintiff is also suffered. Despite several letters and telegrams, the first defendant did not take any action. Records sought by the plaintiff is also not given by the first defendant bank. The plaintiff also sent legal notice on 10.01.1999.

(iv) The sec