Chennai Court September 1940 Judgments

The Nedungadi Bank, Limited Vs. Doraikannu Ammal

Court: Chennai

Reported in: AIR1941Mad282; (1941)1MLJ281

Alfred Henry Lionel Leach, C.J.1. Admittedly the only question which arises in this appeal is whether the respondent gave a continuing guarantee to the appellant bank. The respondent is the wife of one A. Murugesa Mudaliar, an army contractor and merchant carrying on business in Madras. On the 5th May, 1926, for the purpose of this business, Murugesa Mudaliar opened a current account with the appellant and it was arranged that he should be allowed to overdraw it at any one time to the extent of Rs. 18,000 provided that the respondent deposited with the appellant the title deeds of a house belonging to her in Varadamuthiappan Street, Madras, as security for the overdraft. The respondent was to be surety for her husband for this amount and to furnish security. The respondent admittedly deposited the title deeds with the bank on this footing. Her husband paid in and withdrew considerable sums of money, but he did not exceed the limit of Rs. 18,000. On the 17th February, 1927, the overdraf...