The court considered that the managing director of the applicant company was the one who opened the account with the plaintiff bank in the name of the company and drew cheques on that account on behalf of the company and all these have not been disputed. The dispute was only that he was not authorized and there is no evidence in the office of the applicant company showing that the company board authorized him. Court hence considered this to be an internal matter of the company which does not affect the plaintiff as an outsider dealing with the managing director who seemed to have all the authorities.