JUDGMENT

Rajeshwari Prasad, J. - This is an appeal filed by Messrs Rampur Engineering Company Ltd. defendant from the decision of Sri Prayag Narain, District Judge, Rampur, dated 30th April 1965 in Original Suit No. 2 of 1965 filed by the plaintiff-respondent in that court.

2. Major General His Highness Nawab Sir Syed Raza Khan Bahadur, Nawab of Rampur filed this suit for recovery of money on the allegation that the defendant is a company registered under the Rampur State Companies Act, 1932; the plaintiff was a director of the defendant company for a number of years and was interested in its wellbeing. In the year 1960, the defendant company was short of funds and the plaintiff on being approached by it, agreed to finance the company to meet its urgent needs. On 24th Oct. 1950, the plaintiff advanced the sum of Rs. 67,000/- to the defendant company on the promise of payment of interest at the rate of 4 per cent per annum. In the year 1954, the management of the company changed and a new Board of Directors came into existence. The plaintiff's dues however remained unpaid. The plaintiff was willing to forego interest in case the payment was made as promised but as no payment had been