SOUTHERN ROADWAYS LIMITED MADURAI Vs. S M KRISHNAN

JUDGEMENT

(1.) Special Leave granted.

(2.) The question raised in this appeal is whether the agent after revocation of his authority is entitled to remain in possession of the premises of the principal and interfere with the business thereof. The learned single Judge of the Madras High Court in Original Suit C. S. No. 1317 of 1988 has granted temporary injunction restraining the respondent from interfering with the appellant's transport business. But the Division Bench by judgment delivered on March 28, 1989, vacated that temporary injunction. The present appeal is directed against the judgment of the Division Bench.

(3.) The facts are substantially undisputed. The appellant-company under the name as Southern Roadways Ltd. is engaged in the business of transport of goods and parcels to different places in Southern India. It has appointed commission agents at various stations for the purpose of carrying on its business. S. M. Krishnan-respondent was one such agent appointed at Madras City. Cl. III of the agreement by which he was appointed provides that the respondent should arrange a suitable godown and engage employees. Clause XI provides for his removal from service at any time without notice. It also provides that upon removal of the agent the company could occupy the godown. The company could also utilise the services of employees engaged by the respondent. As per the agreement perhaps at the suggestion of the respondent, the Company took on lease a godown at No. 10, Srinivasan Road, T. Nagar, Madras. The godown was put in possession of the respondent for the purpose of carrying on his agency business of the company.