Prem Nath Motors Ltd vs Anurag Mittal

The Supreme Court held that under Section 230 of the Indian Contract Act, an agent is not liable for the acts of a disclosed principal unless a contrary contract exists. The Court found that the appellant, as an agent of M/s. Pal Peugeot Limited, could not be held liable for the refund of the booking amount paid by the respondent for a car that was not delivered. The appeal was allowed, overturning the Commission's order that had dismissed the appellant's application.