An agent who has purchased goods for the principal and made himself personally liable for the price is deemed to be an unpaid seller under the Indian Sale of Goods Act, 1930, and has a right of resale if the buyer fails to pay the price within a reasonable time after notice.

( 1 ) THIS is an appeal by the plaintiff against the judgment and decree of the City Civil Court, Hyderabad in O. S. No. 42 of 1958 dismissing the suit. The plaintiff is a joint family firm carrying on business in grains, gram, castor seeds etc. , at Siddiambar Bazar, Hyderabad. The defendant is a merchant and is carrying on business as a commission agent and a general merchant at Hingoli.

( 2 ) THE case for the plaintiff is shortly as follows : - The defendant met the plaintiff at Hyderabad and agreed to work as commission agent for purchasing and supplying as per the instructions of the plaintiff cotton seeds at Hingoli. It was agreed that the price of the goods so purchased by the defendant must be paid at Hyderabad on Hundis drawn by the defendant. Fifty per cent of the value must be paid in advance and the balance against the railway receipt forwarded along with the Hundis payable at Hyderabad, Accordingly, as per the orders placed by the plaintiff the defendant purchased 600 pallas of cotton seeds and intimated the same to the plaintiff. As advance towards the purchase price of the cotton seeds, the defendant drew Hundis on the plaintiff in a total amount of O. S. Rs. 7,300. 00 and received the amount. By telegram dated 24-7-1952, the plaintiff instructed the defendant to despatch the cotton seeds to Hyderabad. But, by telegram dated 25-7-1952, the defendant informed the plaintiff that there was no stock of cotton seeds standing to the credit of the plaintiff and thereby committed breach of the contract entered into by the plaintiff and the defendant. At the end of August, 1952, the market rate for cotton seeds in Hyderabad was O. S. Rs. 28-4-0 per palla and, thus, the plaintiff suffered damage to the extent of O. S. Es. 7,900/ -. The plaintiff prayed for a decree ultimately for O. S, Rs. 9,555-7-3 being the total amount due with interest at 6 per cent per annum equivalent to I. G. Rs. 8,190-6-3. In his written statement, the defendant denied that he came to Hyderabad and entered into an agreement with the plaintiff at Hyderabad. The defendant was having dealings with the plaintiff-firm even from the year 1949 and the transactions used to take place by letters and telegrams and the business was carried on for the last several years as per the business conventions and customs prevalent in this regard. It was denied that there was any agreement to despatch the goods purchased by the defendant on behalf of the plaintiff from Hingoli to Hyderabad. It is not true that there was any agreement that the price must be paid at Hyderabad. The entire price of the goods purchased was to be paid by the plaintiff to the defendant as and when the goods were purchased. It was denied that only fifty per cent of the price bas to be paid as advance and the balance against the railway receipt forwarded along with the Hundis payable at Hyderabad. The orders for the purchase of 600 pallas were placed on different dates by telegrams and letters, and these orders of purchase included not only the purchase of cotton seeds but also other goods like Lac, Massoor etc. The City Civil Court at Hyderabad had no jurisdiction to entertain the suit as no part of cause of action arose within its jurisdiction. Out of 600 pallas of cotton seeds, there is one transaction of 200 pallas of cotton seeds which related to a forward contract for which the delivery was for Phagun. Out of this, 100 pallas were purchased at the rate of Rs. 23-15-0 on 18-1-1952, The plaintiff failed to pay the amount as per the contract within the stipulated period and as per the business rules. The defendant sold the said 200 pallas on the due date at the rate of O. S. Rs. 10-11-0 per palla, the ruling market rate on 11-3-1952 which was the due date and thereby incurred a loss of O. S. Rs. 2,680-4-0 which has been adjusted in the account of the plaintiff and the same has been intimated to him along with the account. Regarding the remaining 400 pallas of cotton seeds, the pl