TMI Blog1923 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... g to a particular sample sent to the defendant along with the order; that the goods supplied were not in accordance with the sample, they being different in quality and weight; that at the instance of both parties a survey was held at Karachi by two European Surveyors who furnished their report, dated the 16th of July, 1908, holding that the plaintiffs were entitled to an allowance of ₹ 5 per cent on the invoice value of the goods; that the defendant failed to pay the amount allowed and on the 24th of February, 1909, definitely agreed to pay the sum of ₹ 1,550, in full settlement of the plaintiffs' claim in this connection; that the defendant gave a letter to the plaintiffs addressed to the National Bank of India directing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raversed Ram Lal's pleas and the following issues were settled:-- (1) Is this case within the jurisdiction of this Court? (2) Is it within time ? (3) Did the defendant Ram Lal act only as agent of Lockwood and Brothers ? (4) If so is not he liable personally for the due of the plaintiff ? (5) Was the matter in dispute referred to the arbitrators of Surveyors. If so, how much was allowed to the plaintiff on account of deficiency in weight and quality ? (6) Is the decision of Surveyors binding on defendant No. 1 ? (7) Is the plaintiff guilty of any laces disentitling him from claiming amount awarded to him by Surveyors ? (8) In case issue 6 goes in favour of defendant No. 1 and issues 3 and 4 against him, was there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Mr. Durga Das confined his arguments to the question of Ram Lal Qulak's personal liability and contended that on the findings arrived at by the learned District Judge the suit as against his client should have been dismissed. After a careful consideration of the evidence on the record and the arguments of the learned vakils, we are of opinion that Mr. Durga Das' contention is correct. Under Section 230 of the Contract Act an agent is not personally bound by a contract entered into by him on behalf of his principal in the absence of any contract to that effect. Such a contract, however, has to be presumed to exist where the contract is made by an agent for the sale or purchase of goods for a merchant resident abroad. It was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee the delivery in May, but subject to the approval of his Home friends by wire. To this is the plaintiffs' reply Exhibit P 1 dated the 4th of February, 1908. They enclosed sample of the goods they wanted, referred to the price and then proceeded as follows : We will pay you the money on getting the things cleared. They may draw upon us through any Bank, say National Hunk, and it will pay custom duty and other charges itself. It is better for yon to send the sample and write to than all particulars about this, if they accept let them wire, if not, then we will arrange in other way . 6. From the above it appears to be perfectly clear that the plaintiffs understood that the acceptance of their offer was in the hands, not of Ram Lal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Qulak entered into no contract for Messrs. Lockwood Brothers, Limited, the contract question having been entered into directly between the plaintiffs in India and Messrs. Lockwood Brothers, Limited, in England. This being the case Ram Lal Qulak was not personally liable under the contract. It was contended, however, that Ram Lal Qulak had subsequently accepted personal liability, inasmuch as he had agreed to the survey and, on the 24th of February, 1909, had settled the dispute for the sum of ₹ 1,550. His personal liability was for the alleged on the strength of a letter Exhibit P. 4 written by him on the 13th of October, 1910. While we agree with the Court below in holding that Ram Lal Qulak was aware of the survey proceedings, we co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ram Lal Qulak in which they complain of Ram Lal's action in connection with the survey proceedings, saying that it was most unsatisfactory that he should have allowed an arbitration to proceed on a sample other than the original sent to them by him to work to. It will be borne in mind that in Exhibit P-1 dated the 4th of February, 1908, the sample with which the plaintiffs wished the suppliers to be supplied was forwarded to Ram Lal who very evidently forwarded the same to Messrs. Lockwood Brothers. In this view of the case it is not necessary to go further into the arguments of the learned Vakils. 9. In our opinion Ram Lal Qulak was not personally liable under the contract and we accordingly accept this appeal (Civil Appeal No 2867 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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