TMI Blog1934 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ularly contracted in accordance with the powers and authority possessed by the said director and secretary under the articles of the said company and the special resolutions passed from time to time. 2. Defendant 4 in his written statement says that he does not admit that the document was executed by and on behalf of the company, defendants 1 and 2 not being competent to contract loans, much less to charge the property of the company. Objection is taken to the form of this statement, the contention being that it is not enough to say that a fact is not admitted in order to put the plaintiff to the proof of it and an English case Rutter v. Tregent (1879) 12 Ch.D. 758 is cited. But I have not been shown what are the terms of the rule which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation is forthcoming for the failure to bring these questions to trial, I do not feel justified in entertaining them in second appeal. Article 15, of the Company's Articles of Association provides as follows: All deeds, hundies, cheques, certificates and other instruments hall be signed by the Managing director, the Secretary and the working Director on behalf of the Company, and shall be considered valid. 4. The suit document, as has been said is signed only by the Secretary and the working Director, and not also by the Managing Director. It is said, but not very satisfactorily proved, that the Managing Director had been dismissed and was under prosecution on a criminal charge at the time the document was executed. The mortga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding being one of fact is final. 5. It is further argued that even if the execution of the bond was marked by irregularity, yet the mortgagee is entitled to enforce it upon the general principle that there was every reason to believe that the officers who execrated it had authority to do so. This point has been discussed by the learned District Judge and I think the view which he has taken of the law is correct. There are undoubtedly cases in which the, principle just referred to has been recognized, the leading case being Royal British Bank v. Turquand 119 E.R. 474. In that case as between the directors and the share-holders the directors exceeded their authority, but this was not known to the plaintiffs and no illegality appeared on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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