Viscount Sumner, J - (1.)In 1920 the appellants, merchants in Bombay, imported goods from three Manchester firms, Royle & Binns, Davies Black &j Co., and Wilkinson & Warburton, Ltd. In ordinary course, these sellers drew drafts on the appellants with shipping documents attached and discounted them with the respondents bank in London. The respondents then sent the drafts to their Bombay branch to be presented to the appellants for acceptance and for subsequent collection. The drafts fell due generally 60 or 90, though sometimes 120, days after sight, and on presentation they were accepted. On arrival at Bombay the goods were cleared by the appellants and warehoused in the bank's name and under its control.
(2.)Of these drafts there are in all 48, to which this appeal refers, 25 drawn by the first- named firm, 20 by the second and 3 by the third. Their aggregate amount was 24,118-10s. The amount of those drawn against goods shipped to Bombay was 19,753 19s. 4d. The rest were drawn against Karachi goods and are not now in question.
(3.)The Bombay drafts were not presented for payment on their due dates for reasons to be presently mentioned. When ultimately presented at later dates, they were dishonoured, except to the extent of 274 12s. 10d. and thereupon the respondents, as holders, sued the acceptors on the dishonoured bills. At the trial, Shah J. decided in favour of the acceptors and dismissed the suit. On appeal, the Appellate Division of the High Court of Bombay reversed his decree, but gave the acceptors leave to bring the present appeal.