Law: Contract, Act, 1872

Section: S. 188

Law: Civil Procedure Code (V of 1908)

Section: O. XLI, r. 33

Contract Act (IX of 1872), S. 188-Claim based on transaction allegedly entered into by agent of other party-- Authority for agent to act on behalf of principal should pre-exist.   Civil Procedure Code (V of 1908), O. XLI, r. 33---Powers of appellate Court-Y claiming sum of money on transaction entered into by A alleged to be agent of M-Suit decreed against M-M appeals making Y and A respondents-Appellate Court deciding in favour of M cannot, by invoking r. 33, in absence of counter appeal by Y, pass decree against A-Contract Act (IX of 1872), S. 188.   Messrs Bakhsh Illahi & Sons v. Mohkamdin Muhammad Amin and another P L D 1962 Kar. 551 ref.     JUDGMENT   KHAMISANI, J.-This is a first civil appeal filed against the judgment and decree passed by the learned Additional District Judge, Karachi, in favour of the plaintiff-respondents.   2. The facts of this case briefly are that defendant No. 2 in the suit, who was working as Manager for defendant No. 1, was given two sums of money, one of Rs. 1,500 and the other of Rs. 5,500 through bearer cheques on 22nd August 19 55, under receipt (Exh. 15). The cheques were given to defendant No. 2. Another sum of Rs.4,200 was also given by the plaintiff respondents by way of loan to defendant No. 2, on behalf of defendant No. 1 appellant on 5th November 1955. Receipt (Exh. 16) was executed by defendant No. 2 in favour of the plaintiff-respondents. Since the amount was not repaid, notice (Exh. P-2) was given on 4th October 1957, by the respondents to defendant No. 1. The acknowledgment due for this notice was signed by defendant No. 2. Defendant No. 2 sent a reply to this notice on 14th October 1957, on behalf of defendant No. 1 admitting the claim of the respondents and promising to pay the amount within a few months by instalments. The reply sent by defendant No. 2 is Exh. P-5. Another notice dated 25th October 1957, (Exh. P-6) was sent by the respondents to defendant No. 1 asking them to execute a promissory note in favour of the respondents for a total sum of Rs. 11,200 given to them as a loan. A third notice by way of reminder was sent by the respondents to defendant No. 1 on 21st…