PANNALAL JANKIDAS vs MOHANLAL AND ANOTHER.

The Supreme Court held that the plaintiffs, as commission agents, were liable to indemnify the defendants for losses incurred due to their failure to insure goods against fire, as instructed. The Court ruled that the Bombay Explosion (Compensation) Ordinance, 1944, did not alter the liability of the agents, as the loss was directly caused by their neglect, and the Ordinance merely quantified damages without creating new liabilities. The defendants' counterclaim was not barred by the Ordinance since it arose from the plaintiffs' misconduct in their agency duties under Section 212 of the Indian Contract Act, 1872.