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I think it looks like an early 50s A S Gillot (South London frame builder of note) and I really think if you buy a bike that is almost 60 years old cheaply and there is a fault with it, it should not come as a huge surprise, I think it is admirable that you want to do the right thing and if you feel comfortable with returning a small sum as compensation, good on you, but I really feel there is no moral obligation to do so.