TMI Blog1962 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to undertake a liability in respect of goods after they are delivered to him even though the property in goods does not pass to him. Clause (2) providing for giving delivery at the town where the merchant resides has no special significance. The diverse clauses of the agreement, in our judgment, create a relationship of principals and agent and not of vendors and purchaser between the assessees and the merchants to whom the bidis were despatched. - Civil Appeal No. 161 of 1961, - - - Dated:- 29-1-1962 - DAS S.K., HIDAYATULLAH AND SHAH J.C. JJ. B.R.L. Iyengar and D. Gupta, Advocates, for the respondent. S.G. Patwardhan, Senior Advocate, (S.N. Andley, Rameshwar Nath and P.L. Vohra, Advocates of M/s. Rajinder Narain and Co., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will sell your bidis at the rate fixed by you adding to it the expenses incurred. (4) Money towards goods will be remitted to you as sales are effected or sometimes remittance will be made in advance. (5) After the goods are delivered, I shall be responsible for the damages or risk at my place or in transit. (6) I shall take from you, in lieu of my labour, Rs. 3-3-0 as commission per pitara. (7) You will have the right to increase or reduce the rate of bidis. (8) On the goods remaining in stock when the rate is increased or decreased, necessary adjustment of accounts will be made. (9) If I were to be acting in contravention of these conditions, you will have the right to cancel my agency. You will have right to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the agreement contem- plate the transfer-of property in the bidis despatched by the assessees to the merchants to whom they are despatched. By clause (3) of the agreement, the merchant receiving the bidis has agreed to sell them at the rates fixed by the assessees: he is only entitled to add to the rate fixed by the assessees the expenses incurred. By clause (6) the merchant is entitled to Rs. 3-3-0 as commission per box. That remuneration is expressly stated to be in lieu of "labour". By clause (7) the assessees are given the right to increase or reduce the rate of bidis; even in respect of goods which are in stock with the merchant the rate may be increased or decreased and on such alteration of the rate there is an obligation to make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fected. These are clear indications that the relation is of principals and agent and not of vendors and purchaser. The terms of clause (1) imposing an obligation upon the assessees to meet the demands of bidis of the merchants in the areas assigned to them further emphasizes that character of the relation between the parties. It is true that by clause (5), for damages or risk to the goods during transit or in the shop of the merchant, the latter is responsible, but that does not alter the true nature of the right in which he holds the goods. It is open to an agent to undertake a liability in respect of goods after they are delivered to him even though the property in goods does not pass to him. Clause (2) providing for giving delivery a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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