BRAJABALA BARUA AND ORS. Vs. GAUHATI BANK LTD. AND ORS.

JUDGEMENT

(1.) THESE are two first appeals on behalf of two sets of Defendants which can be disposed of by one common judgment.

(2.) THE appeals arise Cut of a suit brought by be Gauhati Bank Ltd. for recovery of Rs. 1,15,341 -0 -9 pies against Defendants Nos. 1, 2 and 3 jointly and severally subject to a deduction of Rs. 11,400/ - in case the suit is decreed against Defendant No. 4. A further prayer has been made for grant of a decree of Rs. 9,000/ - plus Rs. 2,400/ - as interest from the 28th February 1945, to the 30th June 1948, against Defendant No. 4 together with proportionate costs and future interest at Rs. 6 per cent per annum.

(3.) THE case against the Defendants Nos. 2 and is that Defendant No. 2 in excess of the authority conferred on him went on advancing money to the Defendant No. 1 and thus he is liable for the amount advanced to the Defendant No. 1. As against Defendant No. 3 the allegation is that he acquiesced and approved the action of Defendant No. 2 when he without any authority and sanction of the Board of Directors advanced a large sum of money to the Defendant No. 1. He is thus guilty of negligence and breach of the clear direction contained in the memorandum of association and is liable to reimburse the Bank the amount payable by Defendant No. 1 to the Bank.