Anand Shah (Office Administrator) 04 December 2010

Validity of Power of Attorney

Sir / Madam,

My late Father had executed an Agreement for sale of his Life Membership rights of Kutchi Sarvodaya Nagar, Mumbai on 14^th August, 2006 together with a General Power of Attorney in favour of the Buyer on 14th August, 2006. The Buyer happens to be the son of the then Chairman of Kutchi Sarvodaya Nagar. The Buyer, did not get the Membership transferred in his name till the death of my father on 23.05.2007.

The General Body meeting of 16^th September, 2008, had passed that Life Member can replace him / her by nominee who is not a relative during the lifetime of Life Member.

In the meeting of the Trust Board held on 15^th January, 2010, it was decided to discontinue the above facility w.e.f 28^th February, 2010. Thereafter, the Life Member can replace him / her by approved category of blood relation family members upto 31^st March, 2010.

The Buyer is now insisting that we, the legal heirs of my late Father comprising of my Mother, myself and 2 married daughters, give him an NOC for transfer of the said membership in his favour, else he would take legal action for the same.

My query is that inspite of having sufficient time on hand, the buyer [the son of the then Chairman] failed to get the membership transferred in his name. Can he now force us to give an NOC in his favour, either by verbal request OR thru’ the Court of Law, for transfer of Membership in his favour?

Your valuable guidance in the matter shall be highly appreciated.

Thanking you in anticipation.

Regards,

Anand.

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4 Replies

(Guest)

The buyer can insist on your signatures and it is your duty to perform all such formalities to perfect the Title on him, which is gentleman's agreement, since you have already derived the Benefits for the transfer of the Life Membership. If you refuse, the Court can compel you to do it.

V. VASUDEVAN (LEGAL COUNSEL) 04 December 2010

Advocate Rao's views are confirmed in great detail in the article by P V poornimahttps://www.lawyersclubindia.com/articles/Power-of-Attorney-Facts-29.asp

k.chandrasekharan (advocate) 05 December 2010

Generally accepting the ethical aspect of the matter reflected in the two responses from learned professionals I would look at it from a strict legal view.

The relevant details lacking in the query are:

(a) whether the agreement was time-bound or 'time is the essence of contract' mentioned therein. The limitation to enforce specific performance of the agreement to sell is three years from the date of the agreement or three years from the date on which it was stipolated to be completed.

(b) What was the nature of the GPA? Whether it included the 'nominee' clause as mentioned by you? If so, if any steps had been initiated by the attorney, vis a vis the society for getting the membership right of the principal transferred to him? if so, the dispute would be between him and the society.

(d) Whether the legal heirs of the deceased want to repudiate now the agreement in question? If so, whether the agreement so provides. Whether there is any forfeiture clause enabling the seller to forefeit part or whole of the 'advance towards consideration paid" ?

If the legal heirs want to repudiate the agreement in question, it would be necessary to give a notice of rescinding the agreement, within the period of limitation or before the time stipulated in the agreement for fulfilling the contract, whichever is earlier.

Advice: It is a localised matter. Better to consult a local lawyer on all the above indicated matters.

Asgher Mahdi (Advocate & Legal Advisor) 30 December 2010

GPA dies after the executant person die. In your instant case, it is confusing why such execued GPA was not taken into a/c.Apparently , due to the various convenents, cluses of the club it would have rejected. pls check up, on what ground it has not taken into a/c.