1. This is a Plaintiffs appeal in a suit for recovery of Rs. 1,03,988 being Rupees 79,519-12-9 principal and Rs. 24,468-4-0 interest on a deposit which the Plaintiff made with the Defendant.

2. The Defendant is a Ginning and Pressing Factory. According to the Plaintiff the company was obliged to finance cotton traders who sent their cotton to the factory for ginning and pressing, otherwise it was not possible to get their custom. In order to do this the company had to borrow money. This money was borrowed from the Plaintiff, among others, and the Plaintiff sues for the amount which he says is due to him. The Plaintiff asserts that the company had the authority to borrow for the purpose aforesaid. The borrowing was made under the following circumstances.

3. The Plaintiff acted as the company's banker and lent the company money from time to time. The money so lent was placed by the company in a current account and later transferred to a fixed deposit account. These deposits were cashed in or renewed from time to time. The latest, on which the suit is based, was for the sum set out above and was made on 15-1-1940. It is evidenced by a fixed deposit receipt Ex. P-1.

4. We find thi