Case Summary : Snow White Food Product Pvt. Ltd. vs Sohanlal Bagla And Ors.

Citation: AIR 1964 Cal 209

Bench: B Mukherji

FACT

This is a suit for recovery of Rs. 13,031.87 nP. Office worker of firm , Sohan Lal entered into negotiation on behalf of the firm with Snow White Ltd for transferring their goods. Goods were not delivered but were unjustifiably discarded and turned to their own use . In a suit filed against the firm Sohan Lal repudiated that he had ever been a partner of the firm.

ISSUE

• Did Sohan Lal hold out through out the transaction time as a partner of the aforesaid Company?
• Does the goods in dispute here damaged in transit been wrongfully converted by the defendant?
• Is the defendant liable for the amount claimed?

DECISION

It was held that Sohan Lal portrayed himself out as a partner of the firm during transaction with Snow White Ltd. He acted as a partner having authority and showed so before the Snow White Ltd. Furthermore the fact that he pretended to be authorised partner of the firm was also acknowledged by him. Also in many conversation held with Snow White Ltd in course of transaction he signed the letters as if a partner of the firm. Therefore Sohan Lal was held liable to pay Snow White Ltd on the basis of holding out.