M/s. Networth Stock Broking Limited vs Shanthala. Criminal Appeal 335/2017 decided on 23 November 2020.
Judgment Link: http://judgmenthck.kar.nic.in/judgmentsdsp/bitstream/123456789/351239/1/CRLA335-17-23-11-2020.pdf
Relevant paragraphs: 8. Complainant claims that it was liasioning between the accused and share broker. Further the transaction according to complainant and accused is not the first one which is one among umpteen number of transactions entered into between the complainant and the accused. It is not disputed that in the past there are instances wherein the shares were sold and made to purchase through mediation of the accused and also payments were made for choice.
9 & 13. The rule of agency is based on two principles (1) whatever a person can do by himself he can do through another. (2) He who does an act through another does it by himself. Certain regular transactions involving a person who is being represented, person representing the former and the third parties may very well be akin to agency when the binding nature of the liability/duty on the person who is so presented by his representative. Thus the person so represented is principal and who represents is agent.
15. Agency may be expressed or implied agency. Expressed agency is one wherein two parties agree for transaction where one will be acting as agent of another and person so acting as agent for valid acts bind the principal. When agent exercises authority or enters into transaction it will be authority by virtue of authority given by principal and benefit or loss principal is entitled to. Infact many of the principles are similar to that of law of partition. As a matter of fact contract of agency is considered as very partnership is concerned as extension of partnership and the implied authority of an agent.
Appeal allowed.
Compiled by S. Basavaraj, Advocate, Daksha Legal
Daksha Legal 