Power of attorney
chunu subba
(Querist) 05 July 2017
This query is : Resolved
A person had issued irrevocable power of attorney to some contractors for doing some contractual works issued in the name of executant.. The contractors were doing the work based on the irrevocable poa. In the middle of the work the executant died. So what is the status of irrevocable poa? What relief can those contractors get?
adv. rajeev ( rajoo )
(Expert) 05 July 2017
PA is not valid, it looses its validity when the executant dies
Rajendra K Goyal
(Expert) 05 July 2017
POA is not effective if the principal / executant expires.
Dr J C Vashista
(Expert) 07 July 2017
I agree with experts Mr. Rajeev and Mr. Rajendra K Goyal, attorney expired with the death of grantor/ executant.
M V Gupta
(Expert) 07 July 2017
The querist has not given full acts of the case. However it may be stated that if the POA is executed for valuable consideration in property on which the work is being done by the contractor such as power to construct flats or building on the plot and to sell them and the contractor to whom the POA is given, has paid money in full to the executor of the POA, then the POA does not come to an end on the death of the executor in view of the provisions of Section 202 of Indian Contract Act.
M V Gupta
(Expert) 07 July 2017
Dear Expert. I have, before giving the opinion, checked up the legal position. Kindly see the article on the subject by Hariani & Co, Advocates and Solicitors appearing on the website www.manupatrafast.in. Thanks.
M V Gupta
(Expert) 08 July 2017
please type "irrevocable Power of attorney" on your browser. you will get the link. I shall be glad to have ur feed back.
M V Gupta
(Expert) 10 July 2017
Dear Expert,Without going into your unwelcome observations, I would like to point out that sections 6 (4) of the Indian Contract Act deals with the circumstances in which a proposal will become revoked - death of the principal occurring before acceptance of the proposal. Hence this deos not apply to concluded contracts. A case where the POA is already executed is altogether different. this is governed by the provisions of Sections 201 and 202 of the I C Act. Sec 201 provides for the circumstances in which an agency comes to be terminated, one of them being death or unsound mind of either the principal or the agent. Section 202 provides an exception to this provision in the case of POAs coupled with interest, which are generally referred to as Irrevocable POA. Illustration (a) to the section clearly brings out the intent and import of this provision wherein it states that such POA is not terminated even by death or insanity of the principal.
Hope the above clarifies the issue.
M V Gupta
(Expert) 12 July 2017
I agree that the querist has not furnished the full facts of the case, but he has stated that the POA was irrevocable.. Hence I assumed that the POA was for valuable consideration. That is why my reply states -- "if the POA was executed for valuable consideration -----". The experts, prior to my posting, have advised that even an irrevocable POA expires with the death of the grantor or the executor. This needed to be corrected. Now it is for the querist to get his documents verified by his advocate and take proper decision.
