Decree in suit for account between principal and agent
Full Text
In a suit for an account of pecuniary transactions between a principal and an agent, and in any other suit not hereinbefore provided for, where it is necessary, in order to ascertain the amount of money due to or from any party, that an account should be taken, the Court shall, before passing its final decree, pass a preliminary decree directing such accounts to be taken as it thinks fit.
Plain English Summary
Requires the court in principal-agent suits and general accounting disputes to pass a preliminary decree directing the taking of accounts before determining the final monetary liability.
Key Legal Elements
- Principal-Agent Relationship: Governed by Section 213 of the Indian Contract Act (agent's duty to account).
- Mandatory Preliminary Decree: 'Court shall pass a preliminary decree' before ascertaining exact sums.
- Residual Application: Applies to any suit requiring accounts (e.g. co-owners, trustees).
Practical Note
Agent Cannot Sue Principal for Accounts: A suit for accounts under Rule 16 generally lies by the principal against the agent. An agent cannot sue the principal for accounts unless the agent's remuneration depends on accounts exclusively maintained by the principal (*K.C. Skaria v. Govt. of Kerala (2006) 2 SCC 285*).
हिंदी पाठ
मालिक (Principal) और अभिकर्ता (Agent) के बीच धन संबंधी संव्यवहारों के हिसाब के लिए वाद में, तथा पूर्व उपबंधित से भिन्न किसी अन्य वाद में जहां यह अभिनिश्चित करने के लिए कि किसी पक्षकार को या उससे कितनी धनराशि शोध्य है, हिसाब लिया जाना आवश्यक हो, न्यायालय अपनी अंतिम डिक्री पारित करने से पूर्व, ऐसे हिसाब लिए जाने का निदेश देने वाली प्रारंभिक डिक्री पारित करेगा।