JUDGMENT :

1. The defendants 1 and 2 in the suit in O.S. No.3873 of 2001 on the file of II Fast Track Court Additional District Judge, Chennai, are the appellants in this appeal. The first respondent in this appeal filed a suit in O.S. No.3873 of 2001 for recovery of a sum of Rs.1,97,466/- and a further sum of Rs.5,53,441/- along with interest at the rate of 12% from the date of suit. The case of the plaintiff in the plaint is as follows:

The plaintiff is conducting chits of various denominations. On 29.09.1998, two crossed cheques drawn on the first defendant bank, in favour of one Suresh for a sum of Rs.13,355/- and for a sum of Rs.33,600/- respectively, were issued on behalf of the plaintiff. Similarly, on 27.02.1998, a third cheque drawn on the first defendant bank in favour of one Sankar for Rs.98,733/- was also issued on behalf of the plaintiff. All the three cheques were signed only by one V.Gururajan, the fifth defendant in the suit. There was no second signatory to any one of the three cheques. The bank was authorised to honour the cheques only if it is presented with the signatures of any two out of three authorised signatories of the plaintiff. The three cheques were prese