Introduction:

In the legal saga between P. Seshareddy’s representative, represented by his Irrevocable GPA holder and assignee, Kotamreddy Kodandarami, and the State of Karnataka & Others, the Supreme Court unraveled a critical interpretation of the Indian Contract Act, 1872. At its core was the question of whether the death of a principal contractor terminates the agency of a power of attorney holder when an interest in the contract is vested in the agent.

Arguments:

The appellant, relying on Section 202 of the Indian Contract Act, contended that their interest in the contract’s subject matter entitled them to continue the agency despite the principal contractor’s demise. Conversely, the respondent sought termination of the agency post the principal’s death, invoking Section 201 of the Act.

Court’s Judgement:

Justices BR Gavai and BV Nagarathna overturned the High Court’s decision, emphasizing that Section 201 cannot be read in isolation, and Section 202 is pivotal when the agent holds an interest in the contract. Upholding the appellant’s rights, the Court allowed them to persist as the power of attorney holder, affirming that the agency endures even after the principal contractor’s demise.