Present: Pereira J. and Ennis J.

MARIKAR v. CAROLIS et al

Promissory note-Action by an endorsee-Defence that note torn given as security-" Overdue,"

In an action on a promissory note granted by the first defendant to the second, and endorsed and delivered by the second defendant to the plaintiff, it, is open to the first defendant to prove that the note was granted by him as security for the supply of goods by him to a firm, of which the second defendant was broker, and to which the second defendant was thus liable for the default of the first defendant as a customer introduced to it by him, and that the note was discharged by the due supply of goods as undertaken.

A promissory note payable on demand is not necessarily to be deemed to be an overdue note. Unlike a bill of exchange, a promissory note payable on demand is not to be deemed to be overdue for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

THE facts appear from the judgment.

A. St. V. Jayewardene, for plainti