Adaicappa Chetty V. Thos. Cook & Son

Present: Fisher C.J. and Drieberg J.  1930

ADAICAPPA CHETTY v. THOS. COOK & SON.

64-D. C. Colombo, 27,296.

Cheque-Loan transaction-Payment guaranteed by agent of bank-Liability of bank-Authority of agent-Power of attorney-Money had and received-Stamp Ordinance, No. 82 of 1909, s. 37 (1)- Document filed with plaint-Registration of Business Names Ordinance, No. 6 of 1919-Trading in partnership.

The plaintiff, in pursuance of an agreement to lend money to P, gave him certain cheques drawn in favour of the defendant bank,
the proceeds of which were placed to P's credit at the bank.

At the same time P drew four cheques in favour of the plaintiff, which were endorsed by D, an agent of the bank, as follows:

" Payment of cheque guaranteed-Per pro THOS. COOK & SON (BANKERS). (Signed) D."

Held (in an action on the cheques brought by the plaintiff against the bank), that the cheques were converted into bills of exchange by the endorsement of D, but that the bank was not liable as D had no authority to bind the bank.

Held also, that the plaintiff had no cause of action to recover the amount of the cheques from the bank as for mon

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