Buying a company property by a board resolution

Querist : Anonymous (Querist) 23 September 2024 This query is : Resolved
I intend to buy a flat from a real estate corporate company whose directors have appointed a marketting manager, an employee, of the company to sell it . This manager says he can execute the sale deed in the Register office on behalf of the company by a Board resolution authorizing him to do so . Earlier they have appointed a power of attorney to do this work for the sale of the other flats. At present this POA has gone abroad , and also his name is not reflected in the EC . I heard that only one of the Directors of the Company can be authorized to sign the sale deed or otherwise any third person must become a POA to sign the sale deed . I look forward to the opinion by the honourable experts on this issue of who is the right person to sign the sale deed .

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T. Kalaiselvan, Advocate (Expert) 23 September 2024
The board resolution authorizing the employee to execute the registered sale deed in favor of the buyer is not considered as legally valid instrument because it is an unregistered document.
As far as any transaction in respect of immovable property is concerned, as per section 17 of the Registration act, it can be done only by a registered document.
The company's resolution cannot become law or rule to execute the company's ideology as per its whims.
They may have to follow the prescribed procedures of law to execute the registered sale deed in favor of the purchaser.

kavksatyanarayana (Expert) 23 September 2024
The company directors shall execute a POA in favour of any of their employees to execute the sale deeds on behalf of the company. If the previous POA holder is abroad, that POA shall be revoked and a new POA shall be executed.

T. Kalaiselvan, Advocate (Expert) 24 September 2024
An unregistered authoritative in favor of a new employee to carry out the sale deed execution and registration works is not recognized as a legally valid instrument for this purpose

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