Published on: May 18, 2024 12:30 IST
Court: Supreme Court of India
Case: P. Seshareddy v. State of Karnataka 2022
Honourable Supreme Court of India has held that if the Principal – Agent relationship is terminated upon the death of the Principal in accordance of Section 201 of the Contract Act, 1872. However, it is held that Section 201 must be in consonance of the Section 202 of the Contract Act, 1872. It is held that if an interest is accrued in favour of the Agent, then such Agent is entitled to continue with the said agency for such interests.
18. No doubt, the learned Single Judge was right in holding that on account of the death of the original contractor, it amounted to termination of the agency. However, learned Single Judge could not have read Section 201 of the Indian Contract Act in isolation by ignoring Section 202 of the Indian Contract Act. The learned Single Judge failed to take into consideration that on account of the assignment deed, an interest accrued in the said contract in favour of the appellant. Indisputably, the said contract was the subject matter of the agency and as such in the absence of an express provision to the contrary, the appellant was entitled to continue with the said agency.
19. The learned trial Judge rightly construing this position, allowed the application of the appellant. In a jurisdiction under Article 227 of the Constitution of India, the learned Single Judge could not have interfered with the order of the trial Court, unless he found the view taken by the learned trial Judge was perverse or impossible.
Drafted By Abhijit Mishra