Revocation of power of attorney
Arun Laxman
(Querist) 27 July 2013
This query is : Resolved
X agrees to buy Y's land (L) for a consideration of Rs.25,00,000/- and paid Rs.10,00,000/- as an advance and as such entered a sale agreement with Y stating the execution of sale deed within 3 months from date of sale agreement by paying balance consideration amount. But on date of sale agreement, X requested Y to execute a power deed in favour of Z for his easy payment of balance consideration. Beliving the same, Y (principal), executes a valid registered general power of attorney (POA) in favour of Z (power holder/agent) with respect of dealing with Y's land (L). But after the lapse of said 3 months, X n Z has not acted as per wat they obliged to Y. Now witout the knowledge of Y and suppressing earlier sale agreement, Z, as power agent enters a sale agreement wit P in respect of Y's land (L) for Rs.35,00,000/- and recevies advance amount n deposits in his account. Knowing tis later,before Z executing sale deed in favour of P, Y cancelled the POA thro a registered power cancellation deed by orally intimating about the revocation of POA to X n Z. Hence Z unable to execute sale deed in.r.of P and files a case to cancel such cancellation of power on the ground of non issuance of written notice of revocation.
Now whether such unilateral cancellation of POA by Y is valid?
Whether issuance of written notice of revocation is mandatory before cancellation of POA?
Wat other remedy vest wit Y in securing his land (L).
niranjan
(Expert) 27 July 2013
As per sec.3 of the Power of Attorney Act,power holder must have knowledge of revocation.
Advocate Bhartesh goyal
(Expert) 28 July 2013
Power Of Attorney can be revoked at any time by principal and after revocation/cancellation principal has to intimate in this regard to holder in writing.
prabhakar singh
(Expert) 28 July 2013
Now whether such unilateral cancellation of POA by Y is valid?
YES !VALID ! WHAT DO YOU MEAN BY UNILATERAL HERE?GRANT AND REVOCATION BOTH ARE UNILATERAL.WHEN I NEED AN AGENT I APPOINT HIM UNILATERALLY AND I DO NOT WANT TO CONTINUE HIM I WOULD REVOKE UNILATERALLY.
Whether issuance of written notice of revocation is mandatory before cancellation of POA?
REVOCATION REQUIRES TO BE COMMUNICATED AND TAKES EFFECT FROM THE TIME OF COMMUNICATION AND ACTS DONE PRIOR TO COMMUNICATIONS ARE VALID.
Guest
(Expert) 28 July 2013
POA and revocation thereof is at the sole discretion of the principal, so no consent is called for from the POA holder (Z) or X, the prospective purchaser as per agreement.
The question arises, if X has tried to complicate the issue by introducing Z, having no relation with the agreement or transaction, and was not able to get the land registered directly in his name, why X or Z expect Y to compulsorily dance to their tunes? Definitely there would be some case of dishonesty on the part of X to directly swallow a part of profit of X by way of agreement to sell with some third party out of the knowledge of Y and keeping himself out of the agreed purchase from Y.
About remedy, your query is quite strange. It is not understood, whether you have put your queries on behalf of X or Y, as on one hand you want to qask whether cancellation of POA by Y is valid (supposed to be a query on behalf of X, whose money is stuck up with Y) and on the other you want to ask for a remedy for Y. The question is whether the problem lies with X or Y? OR ELSE YOU HAVE PUT MERELY A HYPOTHETICAL QUESTION. Of course, such a hypothetical query cannot be expected from a person of the status of a lecturer.
prabhakar singh
(Expert) 28 July 2013
The date Z filed the suit against y had full knowledge of revocation.
y can be held liable for acts done by z prior to revocation and had there been a suit of specific performance by person P with whom z entered into the agreement with evidence that he had no knowledge of agreement with x,the same could be decreed holding z accountable to y and asking y to execute sale deed and asking y to refund earnest of x,if any.But in case x has evidence that agreeing buyer P from z has knowledge of agreement of x with y,no specific performance decree to agreeing buyer P of z would be granted.
The suit by z is misconceived and can not be decreed at all.A registered revocation is sufficient knowledge.z seems frustrated only because his plan to cheat both x and y has failed and now he can not be successful at any cost.
