Liability against Power of attorney

Querist : Anonymous (Querist) 11 August 2010 This query is : Resolved
Dear Sir,

I have entered into a partnership in the year 1993 with my friend in Delhi who intend to set up a factory there. It was done just on friendship gesture as he was not having financial strength on paper to avail Loan from the financial instituition. As I was staying in kolkata it was not possible to sign up the day to day papers I have given a power of attorney to sign singly to my friend. Anyway after that I have not kept proper track of the business as I was not having any interest. In 2008 I came to know that the unit was taken over by the State financial institution for non payement of dues. The said unit was auctioned and the realisation was also done. As per my knowledge the unit is still having 25Lakhs outstanding. Till today I have not recieved any correspondences from the financial instituition. Now it is query that will I be still liable for the power of attorney I have executed in favour of my friend? Can the financial institution take possesion of my Flat Iam having in Delhi? Can my bank accounts be attached?

I would like to request to suggest me the remedy or legal process by which I can safeguard myself

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Devajyoti Barman (Expert) 11 August 2010
The answer of your query depends upon what sort of legal recourse the bank adopt and what type of liability is there. Legally the principal is bound for the acts of the agebt if his acts fall within the ambit of the purposes for which he was given the agency or if his acts are endorsed or validated bu the principal even if he has done beyond his authority.
The flat in Delhi may be attached if the agent has created any charge on it on the strength of power of attorney.

s.subramanian (Expert) 11 August 2010
yes. i concur.

DEFENSE ADVOCATE.-firmaction@g (Expert) 17 August 2010
Thie is student querry , in reality it is defficult to happen that no track of donee was kept.

Still the principal is liable for all the acts of the agent.

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