Thamboo V. Philippu Pillai Et Al.,

1930 Present: Garvin A.C.J, and Maartensz A.J.

THAMBOO v. PHILIPPU PILLAI et al.

72-D. C. Jaffna, 25,277.

Promissory note-Given as additional security for mortgage debt-Discharge of debt- Note endorsed for valuable consideration -Action by endorsee.

A promissory note was given by way of additional security for a mortgage debt. After the debt was discharged, the promissory note was endorsed for valuable consideration to the plaintiff, who took it without notice of the circumstances.

Held, that the plaintiff was entitled to recover.

THIS was an action brought by the ' endorsee of. a promissory note. It was pleaded in defence that the note had been given as additional security for a debt due upon a mortgage bond which had been discharged. The learned District Judge dismissed the action on the ground that the plaintiff was aware of the circumstance that the note was given as security for the mortgage bond.
Nadarajah, for plaintiff, appellant.- There is no evidence in this case to rebut

the presumption that the plaintiff-appellant is a holder in due course, while the evidence of the payee clearly supports that presumption. The

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