Mr. K.Kannan, J.:- The following substantial questions of law arise for consideration in this second appeal:-

i) Whether the appellate Court was not in error in finding that execution of documents-P12 to P16 which were in the nature of promissory note, declaration of liability, letter of continuity, hypothecation agreement of machinaries and goods constituted a novation of contract, as wrongly assumed, to discharge the liability of the guarantor as being not a party to the documents?

ii) Whether the courts below did not err in finding that the Branch Manager was not duly authorized to institute the suit and prosecute the appeal?

iii) Whether the lower appellate Court failed to apply the discretion to allow for a reception of additional evidence in proof of the authority given by the Board of Directors to one of the Directors to authorize any officer of the Bank to institute the suit?

2. There had been no representation on either side and I have proceeded to examine the case on the basis of the documents filed on behalf of the appellant-Union Bank. The suit for recovery of money against the defendants for the realization of amounts under cash credit limit to the tune of Rs.