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1969 Supreme(Kar) 17

Karnataka High Court
Judges : K.R.Gopivallabha Iyengar
M.S.DEVORAJ - Appellant
Versus
S.V.KRISHNAMURTHY - Respondent
Regular Second Appeal 650 Of 1964
Decided On : 02/04/1969

Section 70 of the Indian Contract Act requires lawful action, non-gratuitous intent, and voluntary benefit acceptance for reimbursement.

Headnote:

power of attorney - agency - Indian Contract Act, Section 70

Fact of the Case:

The plaintiff, as the agent of the defendant, arranged for repairs and improvements to the defendant's property. The plaintiff paid the contractor and sued the defendant for reimbursement.

Finding of the Court:

The lower courts found that the plaintiff, as the defendant's agent, arranged and paid for the repairs. The trial court held the payment was lawful and decreed the suit, while the appellate court held it was voluntary and dismissed the suit.

Issues: Whether the plaintiff's payment to the contractor was lawful and entitled to reimbursement under Section 70 of the Indian Contract Act.

Ratio Decidendi: The court analyzed Section 70 of the Indian Contract Act, which requires lawful action, non-gratuitous intent, and voluntary benefit acceptance. The court found the plaintiff's payment was voluntary and did not entitle him to reimbursement.

Final Decision: The appeal was dismissed, and each party was directed to bear their own costs.

( 1 ) THE salient facts in this case are not disputed. The plaintiff was the holder of a power of attorney from defendant, and it is marked Ex. P-2 and dated 12-2-1951. This power of attorney was cancelled on 24-3-1955. The plaintiff in exercise of the powers vested in him by virtue of the power of attorney arranged for the addition, alteration and repairs of a building bearing No. 861, Narayana Sastry Road, Mysore. This work was entrusted to one Veerabhadra Pillay. The licence for this work was obtained on 31-8-1953. While accepting the estimate for the work, the plaintiff paid a sum of Rs. 1,000/ -. The estimate Ex. P-6 mention that the work is entrusted to veerabhadra Pillai by the plaintiff in his capacity as power-of-attorney holder of the defendant. The total estimate was Rs. 5027. 3-0. The amount due in respect of the work to be carried out was rs. 4027-3. 0 on 5-7-1954. Pillay, the contractor, wrote a letter marked Ex. P. 9 stating that the work entrusted to him has been completed, that arrangement may be made early for payment. The amount mentioned therein is Rs. 4027/ -. As per Ex. P. 9 (a) dated 5-6-1955, the contractor sent a reminder in regard to the settlement of the bill stating that if the amount is not paid within a month from the date of the letter, legal steps will be taken. Another reminder was sent by the contractor to the plaintiff asking him to pay the amount due. On 26-8-1955, the plaintiff sent a reply as per Ex. P-10 stating that the defendant who happens to be the brother-in-law of the plaintiff has cancelled the power-of-attorney executed in his favour. In view necessary action against the defendant. He also refers to a suit filed by the defendant against the plaintiff. On 1-9-1955, the contractor sent a lawyer's notice to the defendant stating that the defendant's house bearing Municipal No. 861, Narayana Sastry Road, Mysore, was repaired under instructions from his power-of-attorney holder M. S. Devaraj, that is, the plaintiff in this proceedings. He called upon the defendant to pay a sum of Rs. 4027/- and informs him that if the amount is not paid within a week, legal action will be taken against him for the recovery of the amount. The defendant sent a reply to this letter on 5th September 1955. In this letter, he denies many of the allegations made in Ex. P-15, and also states that the plaintiff and he are on inimical terms and that the entire expense incurred in connection with the repairs, has been paid to the plaintiff who had incurred expenses and that the defendant is not due to pay any amount to the contractor. The plaintiff appears to have paid a sum of Rs. 4027/- on 20-9-1956 to the contractor, as seen from the receipt marked Ex. P-1 (a ). After this payment, the plaintiff issued a notice Ex. P-14 on 22nd December 1956 calling upon the defendant to pay a sum of Rs. 4027/- which he had paid on 20-9-1956 to the contractor. The plaintiff calls upon the defendant to pay the sum of Rs. 4027/- with interest by way of damages at 12 per cent per annum and also stating that failing compliance with this demand a suit would be instituted. The suit was filed by the plaintiff on 14-6-1957.

( 2 ) THE allegation in the plaint is that during the period of agency, the defendant wanted certain repairs, improvements and alterations to be effected to his house, and accordingly, the plaintiff, as the agent of the defendant, arranged for the work being done. On demand by the contractor, for the payment of a sum of Rs. 4027-3-0 due to him, the plaintiff paid the same on 20-9-1956. He pleaded that the Contractor was about to sue the plaintiff for the sum due, and, therefore, the plaintiff was obliged to pay for the contractor Rs. 4027/ -. The plaintiff now claims that the defendant is now liable to pay the same to the plaintiff. Further, it is alleged that the defendant having benefited by the improvements to his property and having enjoyed the benefits accruing form the improvements thus effected, he is liabl



















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