1934 Present: Macdonell C. J. and Drieberg J.

MARSHALL v. SENEVIRATNE.

263-D. C. Colombo, 47531.

    Power of attorney-Authority to recover and receive debt-no right to delegate authority-Letter to proctor to recover money-No authority to receive- Action on mortgage bond-Payment by defendant to proctor-Fraud of proctor-who should bear the loss ?

Plaintiff, a primary mortgagee, authorized the holder of his power of attorney to call in from the first defendant, the mortgagor, the money due on the mortgage bond and the attorney gave instructions to a proctor to recover the money.

The proctor, having a client, the fourth defendant, willing to leave money with him for investment took from that client certain moneys,, not quite sufficient to pay off plaintiff's mortgage, and induced the first and second defendants to execute a mortgage bond securing the same properties contained in the plaintiff's mortgage, the first and second defendants believing that the full amount thereof would be paid over to the plaintiff in discharge of his claim. The proctor later paid to the plaintiff's attorney moneys amounting to half the sum due on the bond