Mercantile agent status under sale-of-goods law excludes City Civil Court jurisdiction for commission-sale disputes above the threshold.
A commission agent appointed to sell goods on commission qualifies as a mercantile agent under Section 2(9) of the Indian Sale of Goods Act, 1930, because the agency authorises sale in the ordinary course of that business even if it is created for a single principal or transaction. On that basis, a suit arising from commission-sale dealings between the agent and the principal, when the claim exceeded the statutory value threshold, fell within Item 4 of the First Schedule to the City Civil Court Act and was outside City Civil Court jurisdiction. The jurisdictional objection was sustained and the plaint was ordered to be returned for presentation to the proper court.
Issues: (i) Whether a commission agent appointed to sell goods on commission is a mercantile agent within Section 2(9) of the Indian Sale of Goods Act, 1930; (ii) Whether a suit exceeding the prescribed value and arising out of such agency transactions falls within Item 4, Clauses (iv) and (v), of the First Schedule to the City Civil Court Act so as to be outside the jurisdiction of the City Civil Court.
Issue (i): Whether a commission agent appointed to sell goods on commission is a mercantile agent within Section 2(9) of the Indian Sale of Goods Act, 1930.
Analysis: A person appointed as commission agent for sale of goods acts in the customary course of that business with authority to sell goods. The existence of a contract of appointment does not exclude the statutory character of mercantile agent. The definition in the Sale of Goods Act is satisfied where the agency is for sale on commission, even if the appointment is for a single principal or transaction.
Conclusion: Yes. The commission agent was a mercantile agent within Section 2(9) of the Indian Sale of Goods Act, 1930.
Issue (ii): Whether a suit exceeding the prescribed value and arising out of such agency transactions falls within Item 4, Clauses (iv) and (v), of the First Schedule to the City Civil Court Act so as to be outside the jurisdiction of the City Civil Court.
Analysis: Once the plaintiff was held to be a mercantile agent, the claim between the mercantile agent and the principal in respect of commission sale transactions fell within the language of Item 4. The clause did not require both parties to be mercantile agents. In addition, the suit related to mercantile dealings between merchants and traders, bringing it within Clause (iv) as well. Since the claim exceeded Rs. 5,000, the statutory exclusion from City Civil Court jurisdiction applied.
Conclusion: Yes. The suit fell within Item 4, Clauses (iv) and (v), and was outside the jurisdiction of the City Civil Court.
Final Conclusion: The jurisdictional objection succeeded, the trial court's order was set aside, and the plaint was directed to be returned for presentation to the proper court.
Ratio Decidendi: A commission agent appointed to sell goods on commission is a mercantile agent under the Sale of Goods Act, and a claim arising from such agency transactions, when above the statutory value threshold, falls within the jurisdiction-excluding item of the City Civil Court Act.
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