Contract Act, 1872. Section 202. Power of Attorney can be revoked by the principal unless the agent’s authority is coupled with interest. Supreme Court. (Judgment enclosed)

RELEVANT PARAGRAPH 13. Even otherwise, under law revocation of agency by the principal immediately terminates the agent’s actual authority to act for the principal unless the agent’s authority is coupled with an interest as envisaged under Section 202 of the Indian Contract Act. When agency is revoked, the agent could claim compensation if his case falls under Section 205 or could exercise a lien on the principal’s property under Section 221. The agent’s lien on principal’s property recognised under Section 221 could be exercised only when there is no agreement inconsistent with the lien. In the present case the terms of the agreement by which the respondent was appointed as agent, expressly authorises the company to occupy the godown upon revocation of agency. Secondly, the lien in any event, in our opinion, cannot be utilised or taken advantage of to interfere with principal’s business activities.

Compiled by S.Basavaraj, Advocate, Daksha Legal