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M. PIRAVI PERUMAL (Advocate & Consumer Rights)     28 May 2009

NEED YOUR HELP

One Mr. X got a registered power deed executed in his favour from a land owner (instead of sale deed as he intends to sell the same to another person) and  paid the entire sale consideration and had obtained a receipt from the land owner. The land owner has cancelled the power deed without the knowledge of Mr. X and inspite of receiving the entire sale consideration.
 Now what Mr. X to do ?  Mr. X want the land. Kindly advise



 2 Replies

Guest (Guest)     28 May 2009

The land owner should have intimated the Agent before cancelling the GPA. As he has not done so, the Agent can (1) send a legal notice to the owner intimating that based on the GPA, he has entered into a sale agreement with a 3rd party and the sale consideration was paid to the owner vide receipt..... (2) file a civil suit against the land owner for damages.

To safeguard the interest of the Agent, it is better to include a 3rd party as   'sale agreement holder', because through him a criminal complaint also can be lodged.

In these matters, a particular group of marwadi financiers are very sharp.  Immediately after getting a scape-goat land owner, they will get GPA registered at IInd Line Beach SRO or Sowcarpet, and within 2 days they will register a mortgage or sale agreement at the SRO where the land is situated.  (That's the reason they have captured (!) upto Tirupathi)

Prakash Yedhula (Lawyer)     28 May 2009

1) S. 202 of the Contract Act lays down the rule that ‘authority coupled with interest is irrevocable’.



(2) S. 202 of the Contract Act states that "where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest."

 

(3) To make the authority irrevocable, the agent must have an interest in the property which forms the subject matter of the agency. Where the agent has himself an interest in the property which forms the subject matter of the agency, the agency cannot, in the absence of any express contract, be terminated to the prejudice of such interest.

 

Hence the unilateral terminiation of POA can be questioned by the agent.

 

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