( 1 ) THIS judgment is intended to deal with several claims on account of bills collected by the Banking Company in liquidation.

( 2 ) A banker employed to collect and remit money is under a fiduciary obligation to account for and to pay the money to his principal according to directions.

( 3 ) ORDINARILY, the agency does not terminate on collection but continues until payment: --'w. Rule Pink v. Buldeo Dass', 26 Cal 715 (A); --'babu Ram v. Ram Dayal', 12 All 541 (B ).

( 4 ) IF in the absence of any instruction from the principal the banker remits the money by draft, the principal may accept the draft as a conditional payment. If the draft is honoured and the money is paid, the business of the agency is completed; if not, the original obligation of the banker to pay the money is revived and the agency continues.

( 5 ) THE parties may agree that the banker may use the money collected for his own purposes under an obligation to repay an equivalent to the principal instead of remitting the money to the. principal in cash. So soon as the banker be-comes entitled to use the moneys as his own, a' debt is created and the fiduciary obligation and the agency terminate.

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