Law: Contract Act (IX of 1872)

Section: 221

  Contract Act (IX of 1872)--- ----S. 221---Termination of agency---Effect---Agent had pledged goods with plaintiff (Bank) from whom he had borrowed money to conduct business of agency; agent had further agreed to keep goods in warehouse of his principal (PIA) where from principal could not remove goods and same could be removed only on requisition slip signed by plaintiff with whom goods in question, were pledged---Principal violated terms of contract between his agent and plaintiff (which were confirmed by principal), by removing pledged goods from bonded warehouse without requisition of plaintiff, -and after sale of same failed to deposit sale proceeds in account maintained by Agent with plaintiff as per terms of agreement and thereby cause of action accrued to plaintiff against principal-- Agent although denied execution of promissory note and other documents, yet :_~ had not denied his signatures thereon---Failure of Agent to appear and produce his evidence in support of his assertions that he had not executed documents in question, would not raise presumption that he had not executed such document specially when he had not denied his signatures on those documents---Plaintiff having advanced money to Agent for carrying on business of his principal both of them i.e., Principal and Agent were jointly and severally liable to pay specified amount of such loan alongwith interest. Khairunnisa v. Muhammad Ishaque PLD 1972 SC 25; Pakistan Insurance Corporation v. United Liner Agencies 1988 CLC 425; Abbasin Limited v. Metal Exports 1988 MLD 440; Province of West Pakistan v. G.V. Ratanchand Pir Mehfooz PLD 1958 Kar. 251 and Sarshar Ali v. Roberts Cotton Association Ltd. PLD 1963 SC 244 ref. S. Mamnoon Hasan for Plaintiff. A.H. Mirza for Defendant. Dates of hearing: 12th and 13rd September, 1995. JUDGMENT This suit inter -alia is tiled for recovery of Rs.42S,045.54. The brief facts as per plaint are that the plaintiff is a banking company known as U.B.L Airport Branch, Karachi, defendant No.l a businessman and defendant No.2 P.I.A. a Corporation having its Head Office at the Karachi Airport The defendant No.2 had arranged to open Duty Free Shops at the Karachi…