Firm Meghraj Roormal vs Firm Anup Singh-Battu Mal

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1935 Supreme(All) 118

Firm Meghraj Roormal – Appellant
Versus
Firm Anup Singh-Battu Mal – Respondent

JUDGMENT

Iqbal Ahmad, J. - This is a defendant's appeal and arises out of a suit for recovery of a sum of Rs. 2,400 on account of the loss suffered by the plaintiff-respondent in certain forward contracts for the purchase of grain-pits entered into by the plaintiff firm on behalf of the defendant firm. The plaintiff firm carries on the business of commission agents in Ghaziabad and the defendant firm carries on business in Lucknow. The business of commission agency carried on by the plaintiff firm is admittedly on what is known as the pakka arhat system. The position of a pakka arhatia is analogous to that of a del credere agent who incurs only a secondary liability towards the principal, and whose legal position is partly that of an insurer and partly that of a surely for the parties with whom he deals to the extent of any default by reason of any insolvency or something equivalent: Champa Ram and Another Vs. Firm Tulshi Ram-Jai Lal, AIR 1927 All 617

2. The defendant firm entered into certain forward contracts for the purchase of grain-pits through the plaintiff firm and most of those contracts resulted in loss to the defendant. One of the forward contracts, that was entered into b

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