Termination of agency
Section 201 of the Indian Contract Act, 1872 deals with termination of agency. An agency is terminated by the principal revoking his authority; The Act came into force on 01 Sep 1872.
An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of any Act for the time being in force for the relief of insolvent debtors.
Section 201, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Amar Nath vs Gian Chand
Court's Decision & Legal Precedent
When a person holding a power of attorney executes a document on behalf of the principal and presents that document for registration, such person is the 'person executing' the document within the meaning of Section 32(a) of the Registration Act and is entitled to present it for registration without producing the original power of attorney. The production of the original power of attorney is not mandatory for valid registration. Section 18A of the Registration Act requires production of a true copy of the document being registered (not the power of attorney) to expedite the copying process. Sections 32(c) and 33 of the Registration Act, which deal with production of power of attorney, apply only to agents presenting documents for registration, not to persons who have themselves executed the document. Cancellation of a power of attorney, even if validly effected, does not become effective against third parties until notice of such cancellation is brought to their knowledge, as per Section 208 of the Indian Contract Act. The High Court exceeded its jurisdiction under Section 100 CPC by reappreciating evidence and reversing concurrent findings of the trial court and first appellate court on factual matters.
On this section: Deals with termination of agency; agency can be terminated by principal revoking authority of agent
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Sudarshanacharya vs Purushottamacharya
Court's Decision & Legal Precedent
In criminal proceedings, while the right to speedy trial is a fundamental component of Article 21 of the Constitution, courts cannot prescribe automatic or mechanical time limits at the end of which criminal trials must be terminated and the accused acquitted or discharged. Courts must exercise discretion based on the totality of circumstances including the conduct of parties, nature of the offence, and whether allowing proceedings to continue would constitute an abuse of process. The inherent powers under Section 482 of the Criminal Procedure Code may be invoked to quash proceedings only when the court is satisfied on material on record that continued proceedings would be an abuse of process or when ends of justice require it. In cases involving criminal breach of trust relating to institutional property, where the accused has engaged in delay tactics through repeated discharge applications and the complainant has demonstrated continued interest in prosecution, the continuation of proceedings does not constitute an abuse of process.
On this section: Appellant's counsel argued that death of principal extinguishes the power of attorney holder's right to continue proceedings, relying on agency law principles.
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Vls Prasad vs Strip India Ltd.
Court's Decision & Legal Precedent
A Power of Attorney is legally terminated automatically upon the death of the principal executant. Any subsequent sale deed executed by the attorney on behalf of the deceased principal is void and can transfer no right, title, or interest.
On this section: Applied to establish that a general power of attorney automatically ceases with the death of the original principal.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… BPMEL itself never undertook any winning or mining activities from the three mines. On liquidation of the holding company, BPMEL, the power of attorney stood terminated, per Section 201[20]( page-10-2) of the Indian Contract Act, 1872. Moreover, OMDC, a subsidiary of BPMEL, is a separate juristic entity. The plea that the juristic entity should be ignored has not been raised or argued. - 32. It is also an accepted and admitted position that pursuant to several decisions of this Court, penalties of …
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… The sale deed by his power agent was prepared on 23.02.1967. The Nizam passed away on 24.02.1967. But the sale deed was presented for registration by Taraporwala on 17.03.1967. Therefore, according to the appellants, the sale made by the Agent after the termination of his agency under Section 201 of the Indian Contract Act is wholly invalid. 202. If what the appellants say is true, no marketable title could have passed on from Nizam to Cyrus to Goldstone. Therefore, it is not merely those claiming under defendant No.52 but also Cyrus/Goldstone/Trinity, should sink together. 203. Appearing along …
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… The sale deed by his power agent was prepared on 23.02.1967. The Nizam passed away on 24.02.1967. But the sale deed was presented for registration by Taraporwala on 17.03.1967. Therefore, according to the appellants, the sale made by the Agent after the termination of his agency under Section 201 of the Indian Contract Act is wholly invalid. 202. If what the appellants say is true, no marketable title could have passed on from Nizam to Cyrus to Goldstone. Therefore, it is not merely those claiming under defendant No.52 but also Cyrus/Goldstone/Trinity, should sink together. 203. Appearing along …
Questions about Section 201
What have the courts held on Section 201 of the Indian Contract Act?
Amar Nath vs Gian Chand (28 Jan 2022) is the leading judgment on this section among those set out below: Deals with termination of agency; agency can be terminated by principal revoking authority of agent. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2011 to 2022.
How do I find court cases under Section 201 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 201, section 201 Contract Act, section 201 of the Indian Contract Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Amar Nath vs Gian Chand (28 Jan 2022).
When did Section 201 of the Indian Contract Act come into force?
Section 201 of the Indian Contract Act, cited as Contract Act 201, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.