AIR 1967 SUPREME COURT 333 ::1967 2 SCJ 8 ::1966 2 SCWR 239 ::1967 SCD 463

Supreme Court Of India

(V 54 C 61) (From Madras)*

Hon'ble Judge(s): K. Subba Rao, V. Ramaswami , JJ

(A) Contract Act (9 of 1872) , S.213— Suit for accounts - Right of agent to sue his Principal for accounts - Agent has an equitable right. The Principal's right to sue an agent for rendition of accounts is recognised by the Contract Act, inasmuch as S. 213 thereto specifically provides that an agent is bound to render proper accounts to his principle on demand. There is no such provision in the Act which enables an agent to sure his principal for accounts. The statute is not exhaustive and the right of the agent to sue the principal for accounts is an equitable right arising under special circumstances and is not a statutory right. In English law an agent has a right to have an account taken and where the accounts are of a simple nature they can be taken in an ordinary action in a Queen's Bench Division. The legal position in India is not @page-SC334 different. Though an agent has no statutory right for an account from his principal, nevertheless there may be special circumstances rendering it equitable that the Principal should account to the agent. Such a case may arise where all the accounts are in the possession of the Principal and the agent does not possess accounts to enable him to determine his claims for commission against his principal. The right of the agent may also arise in an exceptional circumstance where his remu....