Chennai Court December 1921 Judgments

Annamalai Chetty Vs. Muthiah Chetty and ors.

Court: Chennai

Reported in: AIR1922Mad210; 70Ind.Cas.590

1. The first defendant is the appellant. He executed the note sued on in favour of the second defendant who endorsed it to defendants Nos. 3, 4 and 5. The third defendant endorsed it in blank and handed the note to defendants Nos. 4 and 5 and they endorsed it in blank, received the sum due on the note and handed the note to, the plaintiff. The District Munsif dismissed the suit on the ground that the endorsement by the third defendant and defendants Nos. 4 and 5 was not valid under Section 51 of the Negotiable Instruments Act and that plaintiff acquired no title under the endorsement by defendants Nos. 4 and 5, in his favour. On appeal the District Judge reversed the decree on the ground that defendants Nos. 4 and 5 were agents of the third defendant for collection of the amount due and that they had power to endorse on his behalf.2. So far as defendants Nos. 3, 4 and 5 are concerned, it is admitted that the endorsement to them by the second defendant was for collection. It is stated i...