Advocates:
K.CHANDRAMOULI, K.K.MANI, K.K.VENUGOPAL, MINAKSHI SUNDARAM, R.VENKATARAMANA, SATYA MITRA GARG, V.G.PRAGASAM, V.PRAKASH, Y.S.Chitale

The legal document addresses the issue of an agent’s rights and obligations following the revocation of their authority, specifically concerning possession of premises and interference with the principal’s business. The key points are as follows:

1. Agent’s Authority and Revocation: When an agency is revoked by the principal, the agent's actual authority to act on behalf of the principal terminates immediately, unless the agency is coupled with an interest (!) . The agent does not retain any inherent right to remain in possession of the premises or interfere with the principal’s business activities once the agency is terminated (!) .

2. Possession of Property: An agent holds possession of the principal’s property solely on behalf of the principal. Such possession is not independent but is considered the possession of the principal. The agent cannot deny the principal’s title or convert the property for personal use (!) (!) (!) (!) . The possession of the agent is fiduciary in nature, akin to that of a trustee, and is not personal interest but held for the principal’s benefit (!) .

3. Legal Rights Post-Agency: After the termination of agency, the agent has no legal right to remain in the premises or to interfere with the business operations of the principal. The principal has the right to assert possession and carry on business activities without interference from the former agent (!) (!) .

4. Fiduciary and Legal Principles: The relation of agency may be fiduciary, but it varies depending on the nature of the agency and the confidence reposed by the principal. In general agency, the agent’s possession is regarded as the possession of the principal, and the agent cannot set up adverse claims or title against the principal (!) (!) .

5. Implication of Agency Terms: The agreement between the principal and agent typically defines the extent of the agent’s rights, including provisions for revocation and occupation of premises. Unless explicitly stated, the agent does not have the right to remain after agency termination or to interfere with the principal’s business activities (!) (!) .

6. Injunctions and Interference: Courts generally favor the principal’s right to carry on business after the agency is revoked, and they are reluctant to imply terms that would restrict this freedom unless explicitly agreed upon. An agent’s possession or interference after revocation can be restrained through appropriate legal remedies such as temporary injunctions (!) (!) (!) .

7. Legal Consequences of Termination: Revocation of agency results in the immediate loss of the agent’s authority and rights to possess or interfere with the property or business. The principal can lawfully take possession of the premises and continue their business activities, and the agent’s possession is deemed to be on behalf of the principal (!) (!) .

In summary, once an agency is revoked, the agent loses all rights to possess or interfere with the principal’s premises or business, and their possession is considered to be on behalf of the principal. The law supports the principal’s right to exclusive possession and operation of their business following termination of the agency relationship.