Nagammai Achi V. Lakshamanan Chettiar

[IN THE PRIVY COUNCIL]

1957 Present: Viscount Simonds, Lord Oaksey, Lord Tucker,
Lord Somervell of Harrow and Mr. L. M. D. de Silva

NAGAMMAI ACHI and another, Appellants, and A. R. L.
LAKSHAMANAN CHETTIAR, Respondent

PRIVY COUNCIL APPEAL NO. 27 OF 1953

S. C. 234-D. C, Galle, X 56

Fraud-Burden of proof-Misdirection-Concealed fraud-Can agent's knowledge be imputed to the principal ?Prescription.

The equitable principle of concealed fraud is part of the law of Ceylon. It is not necessary to establish some independent act of concealment in cases where the tort is itself done furtively so that its commission will be concealed.

The plaintiff was a money lender resident in India and having a branch of his business in Ceylon. The branch was managed by the defendant, who held a power of attorney from the plaintiff. Two persons, A and B, were debtors of the Ceylon business-the former under a decree which the defendant had obtained against him, and the latter upon a promissory note given by him to the defendant. On January 25, 1933, the defendant assigned the decree and negotiated the promissory note to one Alagappa without rec

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