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JACK
Karala Valley Tea Co. Ltd. – Appellant
Versus
Lachmi Narayan Agarwalla – Respondent
JUDGMENT
Jack, J. - This appeal has arisen out of a suit for recovery of a sum of Rs. 1000 from three defendants. The money was paid to defendant 1 by one Mahadeo (who is the manager of the plaintiff's shop for the sale of bicycles, motor tyres and a gramophone at Jalpaiguri) as earnest money on account of a contract which he purported to enter into with defendant 1 as agent of the plaintiff for taking sub-lease of a tea garden belonging to defendant 1. In the contract it was laid down that if there was default on the part of the plaintiff in completing it, the sum of Rs. 1000 which was paid as earnest money was to be forfeited. As the plaintiff maintains that Mahadeo was not empowered to enter into this contract he repudiates the contract and claims to recover the Rs. 1000 from defendant 1 which defendant 1 maintains he is entitled to retain, the contract not having been completed by the plaintiff. In this appeal it is urged that the plaintiff is not entitled to any relief in the present suit against defendant 1 irrespective of the question whether Mahadeo acted within or beyond the scope of his authority, and that Section 65, Contract Act, was wrongly applied in this case by the J
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